Keep on Truckin: Transportation Stocks with Strong Institutional Buying

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China and the US, the world’s two largest economies, continue to show signs of positive economic activity. In America, a report on increasing factory orders for the month of May cheered up investors. Meanwhile, China saw rapid growth in its services industries, which also improved employment figures.

This is good news for retail and manufacturing businesses that have seen the demand for their goods wane as a result of the global economy’s sluggish pace. The news is equally good for the transportation companies that handle the shipping of goods from factories to main street storefronts around the world.

In addition, the American and Mexico governments are looking to finalize a trade deal that would involve Mexico cutting its tariffs (taxes on imports) on numerous American products. US Agriculture Secretary Tom Vilsack said that the tariffs have cost American businesses $2B, reports Reuters.

Mexico is the second largest export market for American pork and one of the US’s largest trading partners. Easing businesses’ access to that market should increase the demand for the transportation of goods as well.

The path to profits is not too smooth for the transportation companies, however. For starters, Europe is still deep in the throes of economic turmoil. Chinese demand might also begin to waver as the government tries to slow down its price inflation, which should simultaneously slow down its economic growth. Oil prices are also forecast to continue rising, which will increase fuel costs for truckers, shippers, airlines, etc.

To help you with your own analysis of this industry, here is a list of transportation stocks that institutional investors have been buying this quarter. Do you agree with their bullish sentiments on these stocks?

 

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List sorted by net shares purchased by institutional investors as a percentage of the share float.

1. Greenbrier Companies (GBX): Railroads industry with a market cap of $526.35M. During the current quarter, institutional investors have bought 3.5M shares (net), which represent 15.58% of the 22.46M share float.

2. Quality Distribution Inc. (QLTY): Trucking industry with a market cap of $311.37M. During the current quarter, institutional investors have bought 2.1M shares (net), which represent 14.08% of the 14.91M share float.

3. Frontline Ltd. (FRO): Shipping industry with a market cap of $1.08B. During the current quarter, institutional investors have bought 7.1M shares (net), which represent 13.78% of the 51.52M share float.

4. Hornbeck Offshore Services, Inc. (HOS): Shipping industry with a market cap of $718.15M. During the current quarter, institutional investors have bought 1.8M shares (net), which represent 9.29% of the 19.37M share float.

5. Teekay Tankers Ltd. (TNK): Shipping industry with a market cap of $557.43M. During the current quarter, institutional investors have bought 3.5M shares (net), which represent 9.17% of the 38.15M share float.

6. Teekay Offshore Partners LP (TOO): Shipping industry with a market cap of $1.64B. During the current quarter, institutional investors have bought 2.4M shares (net), which represent 6.65% of the 36.09M share float.

7. Overseas Shipholding Group Inc. (OSG): Shipping industry with a market cap of $797.1M. During the current quarter, institutional investors have bought 1.6M shares (net), which represent 6.47% of the 24.73M share float.

8. Capital Product Partners L.P. (CPLP): Shipping industry with a market cap of $347.62M. During the current quarter, institutional investors have bought 808.6K shares (net), which represent 6.32% of the 12.79M share float.

9. Danaos Corporation (DAC): Shipping industry with a market cap of $614.76M. During the current quarter, institutional investors have bought 1.8M shares (net), which represent 5.57% of the 32.29M share float.

10. Roadrunner Transportation Systems, Inc. (RRTS): Air Delivery & Freight Services industry with a market cap of $470.52M. During the current quarter, institutional investors have bought 469.6K shares (net), which represent 5.55% of the 8.46M share float.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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