Why Trucking Stocks Look Like Good Values Right Now
Don't invest in the trucking sector if you can't handle cyclicality, because the ups and downs in its end-markets are equally matched by the volatility of its stocks.
If you like the industry and stocks in it, like engine maker Cummins and truck makers Navistar and PACCAR, then the best option is probably to buy and hold long term, riding out those inevitable down periods. That said, when buying into a cyclical stock, timing is obviously important -- no one wants to invest in a stock at a peak and this sector looks set to decline in 2020. In that context, let's take a look at what the latest set of earnings reports from major companies in the sector suggest about buying the stocks.
The light at the end of the tunnel for trucking stock earnings could come in 2021, but investors are likely to buy in ahead of it. Image source Getty Images
Source Fool.com