Saturday, March 1, 2014

Cummins, Navistar and Paccar: why the Outlook for US Trucking is Better in 2014

If there is such a thing as an investing based game show, then heavy engine manufacturer Cummins  is a strong candidate for a trivia question. The stock is up over 30% in the last year, after recording flat revenue and an operating income decline of 6.7% in 2013.  In addition, customers in its truck engine segment Paccar and Navistar (also a rival) are up around 40% and 50% respectively. What exactly is going on, and can it continue?

Cummins, Paccar, and Navistar
The answer to the trivia question above isn't as obvious as it may seem. A surging stock market has certainly helped pull these stocks higher, but they also rose for some stock-specific reasons. The main thing they have in common, is that the outlook for the North American trucking market is better than in 2013.

No comments:

Post a Comment