Wednesday, 28. June 2017  
30.03.2016 21:04
Author: Nic Wright

STOCKSCREEN: Margin-Of-Safety Check For Transportation Stocks

 

Some of the best-performing stocks and sectors since the January/February lows have been related to commodities and the companies that transport them and other goods. The Dow Jones Transportation Index is up more than 20% from the January/February lows. Taking the commonly accepted definition of a 20% rally off of a low, transporation stocks are in a new bull market.

 

That could even trigger suggestions that this is a positive sign for the broader stock market as it indicates that consumers are active and the economy should recover. Admittedly, a new bull in Transports is not necessarily a bullish signal for the broad market, but it is worth having a closer look on this segment of the market.

 

In looking for ideas we check valuations of stocks with relative strength in the transportation segment based on our AVM’s fair value estimates.

 

Here are the filter criteria:

1. Market capitalization above 5bn.

2. Relative Strength over 12 months.

 

Here is our list of stocks matching all criteria in alphabetical order. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted in the MODELER, our modeling and forecasting environment:

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

COUNTRY

LAST PRICE

MARKET CAP.

MEAN MULTIPLE UPSIDE [%]

GRAHAM UPSIDE [%]

GREENBLATT UPSIDE [%]

PRICE / EARNINGS

 C.H. ROBINSON WORLDWIDE INC

 United States

74.04

10606

23.6

-21.4

-30.3

19.7

 CANADIAN NATL RAILWAY CO

 Canada

80.32

63163

-16.2

-41.3

-36.2

17.3

 DSV A/S

 Denmark

273.70

52687

-15.8

-45.1

-42.5

23.9

 EXPEDITORS INTL WASH INC

 United States

48.73

8896

9.8

-15.6

-8.5

19.5

 KUEHNE & NAGEL INTL AG-REG

 Switzerland

135.30

16236

-2.1

-39.1

-34.6

22.7

 UNITED PARCEL SERVICE-CL B

 United States

105.06

93099

-7.5

-45.6

-40.1

18.2