4 Attractive Transportation Stocks With Great Momentum

Momentum investing essentially draws on basic human sentiment and preference for a stock and its potential to deliver higher returns. Contrary to value stocks, momentum stocks are attractive picks due to the market buzz surrounding them.

The development driving the stock can range from news, events or just general investor preference for the stock. Momentum stock investors are usually in the game for short-term returns driven by favorable movement in the stock price and possibilities of a further rise in the days ahead.

Mixed Markets

Currently, lot of value stocks have been drawing mixed views from analysts. Also, there is lack of clarity about the direction the markets are headed toward. Meanwhile, the uncertainties prevailing since Brexit will ease out atleast on the political front with Theresa May expected to be the new Prime Minister. May is expected to ensure that U.K. has a smooth exit from the European Union.

Meanwhile, in the U.S., second-quarter earnings are starting to trickle in. Projection for the second quarter earnings is bleak with earning expected to decline by 6.2%. U.S report for the number of jobs added in June has been favorable. However, the Fed’s stance on interest rates though, is expected to remain cautious going forward.

Additionally, the performance of emerging markets remains unclear while currency fluctuations and low oil prices continue to spook markets. Thus, in such a scenario, momentum stocks can make safer bets compared to value investments.

4 Compelling Momentum Picks

Our strategy of picking these stocks is based on two fundamentals – Momentum Style Score and Zacks Rank in addition to the Zacks Rank. Stocks with a Momentum Style Score of 'A' or 'B,' when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have good prospects.

Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (NYSE:PAC) , headquartered in Guadalajara, Mexico, maintains and operates 12 airports in the Mexican region. The company holds a Zacks Rank #1 along with a Momentum Style Score of A. Being a strong momentum stock, the company’s price has appreciated by 16.64% year to date (YTD) in addition to a 3.68 % increase in the past four weeks. The company also recently reported a 17.3% increase in traffic for the month of June.

United Parcel Services, Inc. (NYSE:UPS) , based out of Atlanta, Georgia in the U.S., is the world’s leading transportation and logistics services provider. The company’s expanse and new innovative initiatives make it a smart choice for value investors too. United Parcel Services carries a Zacks Rank #2, Momentum Score A and VGM score of A as well. The company’s stock price has rallied 13.81% YTD with a 4.33% increase in the past four weeks.

Star Bulk Carriers Corp. (NASDAQ:SBLK) is a Greece-based leading global shipping company in the dry bulk sector. The company carries a Zacks Rank #2 and a momentum score of A, making it a favorable pick. The company boasts an 18.33% price appreciation YTD.

Navios Maritime Holdings Inc. (NYSE:NM) is headquartered in Greece and provides transport and transshipment of dry bulk commodities. The company holds a Zacks Rank #1 coupled with a Momentum Score of A. The company has seen an 8.05% price increase in the past one week which makes it an attractive investment option.