The Zacks Analyst Blog Highlights: GATX, SkyWest, Canadian National Railway, Old Dominion Freight Line And Alaska Air
Zacks Investment Research | Feb 11, 2020 09:37PM ET
For Immediate Release
Chicago, IL – February 12, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: GATX Corporation (NYSE:GATX) , SkyWest (NASDAQ:SKYW) , Canadian National Railway Co. (NYSE:CNI) , Old Dominion Freight Line (NASDAQ:ODFL) and Alaska Air Group (NYSE:ALK) .
Here are highlights from Tuesday’s Analyst Blog:
5 Transportation Stocks in Focus Amid Coronavirus Scare
It is a well-documented fact that 2019 was an extremely rewarding year for Wall Street with the three major indices — the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite — notching up double-digit gains. Although all three indices have been trading in the green so far this year, gains are muted in nature, nowhere near the stellar performance witnessed in 2019. In fact, Wall Street’s two major stock indices — the Dow and the S&P 500 — ended the first month of the ongoing year in the red.
The primary reason for this pullback is the outbreak of the deadly coronavirus in China. This outbreak has resulted in more than 800 deaths so far in Mainland China alone. What is worse is that this virus has spread to countries like the United Arab Emirates and Germany.
Dividend-Paying Stocks to the Rescue
Given this uncertain backdrop, focusing on companies that are financially stable and mature, and can even generate steady cash flow irrespective of market conditions seems to be prudent. Due to their financial health, these companies not only pay consistent dividends but also raise the same irrespective of the surroundings.
As investors prefer an income-generating stock, a high dividend paying one is much coveted. Needless to say, investors are always on the lookout for companies that have a track record of consistent and incremental dividend payments. Notably, the best dividend stocks are those that pay out a healthy yield and have strong prospects are less susceptible to market downturns.
5 Transportation Stocks to Watch
Naturally, the coronavirus outbreak has had a negative impact on the transportation sector, which houses airlines, railroads and shipping companies to name a few. Due to this pressing concern, Dow Jones Transportation Average — a price-weighted average of 20 U.S. transportation securities — has been trading in the red on a year-to-date basis. Also, the NYSE ARCA Airline index has been in the red so far in 2020, mainly resulting from fears of declining international-travel demand due to the coronavirus outbreak.
Despite the negative impact of the coronavirus outbreak, we believe transportation stocks will be in focus, as many companies in the transportation space reward shareholders through dividend payments and also raise the same.
Below, we have highlighted five transportation stocks, which not only have an impressive dividend-paying history but have also raised their dividend payouts in 2020.
Our first choice is GATX Corporation, based in Chicago, IL. This Zacks Rank #1 (Strong Buy) company is a leading global railcar lessor. You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.