Can FedEx Corporation (FDX) Keep Rolling?

CH Robinson shares are intriguing in light of the company’s business model. It has been achieving volume and pricing increases in its core LTL business. Given the growth strategy, I like the stock’s upside potential at its current valuation.

Next, for another logistics provider not exposed to international markets, look into Hub Group Inc (NASDAQ:HUBG).The company contracts with railroads and trucking firms for its transportation operations. It has been keeping those transport costs in check as volumes climb, boosting the gross margin.

Hub Group, too, has strong liquidity. It has in the past grown through acquisition, including a major purchase in 2011 of Exel Transportation Services. The use of cash for further such purposes, along with stock repurchases, is possible.

Reliant on a healthy railroad market, Hub Group is poised to perform well as that shipping mode continues to gain headway. It has relationships with most of the major rail transporters in North America, such as CSX and Union Pacific.

Hub Group shares are at a two-year apex and have appeal for near-term price momentum. They are also a decent selection for a long-term portfolio.

The Scoop

FedEx Corporation (NYSE:FDX) has consistently invested in long-term projects aimed at driving long-term profit growth. Its shares reflect the prospects for an earnings turnaround next fiscal year that should materialize. Take note of the earnings release on March 20. In the meantime, I have highlighted just a couple of the stocks that may benefit from the currently favorable domestic shipping conditions. See also my previous blog dated January 14 where I highlighted several stocks including Forward Air Corp. and GATX Corp.

The article Can FedEx Keep Rolling? originally appeared on Fool.com and is written by Damon Churchwell.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!