Tuesday, January 11, 2011

FedEx (NYSE:FDX), CSX (NYSE:CSX), JB Hunt (Nasdaq:JBHT), Old Dominion (Nasdaq:ODFL) Look Solid in 2011 Says Deutsche (NYSE:DB)

FedEx (NYSE:FDX), CSX Corp (NYSE:CSX), JB Hunt (Nasdaq:JBHT) and Old Dominion (Nasdaq:ODFL) are among the leading companies in the transportation sector for 2011, according to Deutsche Bank.

Deutsche noted, "Our top picks are Integrator FDX for its operating leverage, pricing power and cost savings from it aircraft fleet renewal (employing more fuel efficient vessels). We believe railroad CSX is positioned to drive solid y/y margin improvement as coal volumes (both met and thermal) likely increase in 2011, it benefits from above-rail-inflation pricing, and strong intermodal volume growth (intermodal benefits from high incremental margins). Our sense is that intermodal and TL carrier JBHT should drive above-average top- and bottom-line growth as we see strong intermodal volume growth and TL pricing improvement. We expect ODFL to drive strong operating leverage from volume growth and better LTL pricing."

FedEx was trading at $93.10, down $0.96, or 1.02 percent, as of 11:56 AM EST. CSX was trading at $68.21, up $0.23, or 0.34 percent. JB Hunt was trading at $42.03, up $0.16, or 0.38 percent. Old Dominion was at $32.49, down $0.18, or 0.55 percent.

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