US airlines have encountered great turbulence due to COVID-19. They trade at a large discount to the S&P 500. Moreover, they have become massively oversold. While a short-term bounce is possible, it is unlikely to be more…
Yesterday, BCA Research's US Equity Strategy service reiterated its overweight stance on the S&P airlines index. Airline stocks have taken it on the chin lately on the back of COVID-19 demand destruction fears, but…
Highlights Portfolio Strategy Most of the macro and operating indicators we track are sending conflicting messages on the anticipated direction in the cyclical/defensive ratio. Stay on the sidelines on cyclicals versus defensives.…
Underweight – Upgrade Alert Two recent positive developments in railroad operating metrics compel us to put rails on an upgrade alert. Specifically, our operating margin proxy is expanding at a healthy pace (second…
Underweight Transports have taken a beating recently with the heavyweight S&P railroads index leading the pack lower. Our underweight stance is paying handsome dividends and there are more gains in store in the coming…
Neutral - Downgrade Alert The transportation industry is a bellwether for the economy as rising freight hauling services demand is synonymous with firming economic activity and vice versa. The recent FedEx earnings report…
Energy Stocks Are Heading North Banks Clamoring For Higher Rates And A More Hawkish Fed Homebuilding Stocks Are Catching Up To Housing Starts Will Global Trade Get “Fed-Exed”? Do Not Try To Bottom Fish……
Overweight-Downgrade Alert Airline stocks bounced off a critical support level on the back of encouraging profit results (top panel). Lower kerosene prices especially for the non-hedged carriers are flowing straight to the…
Underweight Our underweight S&P railroads call has moved into the black as CSX rattled the industry and chopped 2019 revenue growth from positive 1-2% to negative 2%. While UNP’s numbers were better than expected…