Freight Rail Traffic Data: The Economy
Every week, the AAR (Association of American Railroads) releases weekly freight rail traffic data from major North American railroads. As the economy improves so should activity in the rails.
July 11 – Freight Rail Traffic
US railroad companies’ (XTN) overall rail traffic expanded 8.6% YoY (year-over-year.)
Railroads moved ~485,200 railcars vs. ~446,700 in the same week last year.
Rail traffic expanded 12% YoY to ~244,700 trailers and containers from ~218,500 units.
If railroads are shipping more goods, it stands to reason that cars need to be added or replaced from time to time. As a result, we are watching institutional investors appetite for this industry group.
American Railcar Industries (ARII) designs and manufactures railcars and the components used to make railcars. The stock broke out on Friday on above-average volume. Relative strength line is rising.
CSX (CSX) earnings easily topped second-quarter estimates amid solid revenue growth and improving operating efficiency. The strong results from the first big rail operator to report this earnings season are a good sign for the industry and economy. CSX stock jumped toward a buy point. – Source Investors Business Daily
As the economy improves, watch out for other companies to report similar results. GBX, GATX,
We’ll be LIVE at 9:20 to discuss.
Happy Trading,
Vinny
Recent articles: https://wp.me/p32Fxi-7pX
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.