How to evaluate top transportation stocks
You’ll see some commonalities if you invest in transportation stocks. To assess how these companies will fare, keep the following in mind.
Transportation companies use a lot of energy to get things where they need to go. They’re therefore sensitive to crude oil prices and fuel costs. Whether they use jet fuel for planes, diesel for trucks and trains, or a combination of electricity and natural gas to run updated equipment, the best transportation companies seek to be as fuel-efficient as they can be.
It’s expensive for transportation companies to buy the equipment they need. Financing purchases through long-term debt can be smart, but the best companies keep their debt levels from getting unsustainably high.
When the economy is strong, transportation companies tend to do well, because plenty of people and businesses want to ship things. But shipping demand