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Lean Short-Term Growth Portfolio Buy Alert - YRC Worldwide


The LTL industry has witnessed contrasting performance which is pitting varying public companies against one another.

On one side, companies including FedEx, Forward Air and Old Dominion Freight have witnessed positive tonnage growth offering some stability.

On the other side, companies including ArcBest Corporation, Roadrunner Transportation and Saia have been consistently weaker.

In between are companies including XPO Logistics Con-Way, UPS and YRC Worldwide which have witnessed declining tonnage leading to a focus on yield management.

Based upon YRC Worldwide's prospects, tomorrow's trading environment may offer an opportunity to accumulate more shares at a substantial discount to 2016 earnings estimates.

Action: Accumulate

Earlier last month and during March, both FedEx (NYSE:FDX) and Old Dominion Freight (NASDAQ:ODFL) provided their earnings updates for their respective quarters. Both companies witnessed substantial rallies based upon their overall performance. For FedEx, this obviously included a diversity of revenue segments above the less-than-truckload, LTL segment. But overall diluted EPS beat and LTL tonnage growth was positive in the low single digits.

Old Dominion Freight as a pure LTL play, witnessed performance solid enough to provide excellent stock appreciation. This included an earnings beat as well as similar low single digit LTL tonnage growth from last year. Forward Air (NASDAQ:FWRD) provided strong results and the company has been executing strongly with its niche airport-to-airport focus. Further insights have...