The trucking sector keeps running into roadblocks as labor shortages, trade war complications, higher oil prices and hurricane logistics issues all arrive just as contract pricing is reported to be falling back a bit.
Last week, Wolfe Research warned on slower freight volume and pricing growth over the next two years for the trucking industry.
The leading decliners in the sector over the last 30 days are U.S. Express (NYSE:USX) -30%, USA Truck (NASDAQ:USAK) -24%, Echo Global Logistics (NASDAQ:ECHO) -24%, ArcBest (NASDAQ:ARCB) -21% and Saia (NASDAQ:SAIA) -21%. The only two trucking stocks to ride higher over the same period are P.A.M. Transportation Services (NASDAQ:PTSI) +8% and Patriot Transportation (NASDAQ:PATI) +5%. On a YTD look, the biggest decliners are Daseke (NASDAQ:DSKE) -49% and YRC Worldwide (NASDAQ:YRCW) -40%.
The recent downturn in trucking names has led to some valuations falling below historic norms. Covenant Transportation (NASDAQ:CVTI), USA Truck, U.S. Xpress Enterprises (USX) and YRC Worldwide all trade with a single-digit forward PE ratio.
Your turn: Which trucking stock looks the most attractive to hold right now?