First quarter GDP figures were released this morning. Sub-2.0% growth is a disappointment to many, but you would be hard-pressed to see that in the performance of the railroad stocks. A quick glance at the charts of these companies shows them not only outperforming the overall market, but the transportation sector as well. This is a reflection of the continued strength in the US industrial economy. There are other tailwinds as well, including continued strength in coal shipments and a shift towards intermodal traffic in light of higher fuel prices. For those looking for a flaw in the US economy at the moment they will for now have to look elsewhere. In today’s screencast a look at the economic engine that is the railroad sector.
Items mentioned in the above screencast:
First quarter GDP growth slowed. (Free exchange)
Strong earnings from Norfolk Southern. (MarketBeat)
A view of the global economy from the rail yard. (Pragmatic Capitalism)
Strength in the rail stocks. (Dragonfly Capital)
Relative performance of: KSU, NSC, UNP, CSX, IYT, SPY. (StockCharts)
