Sunday, September 1, 2024

These Two Transport Stocks Are Outperforming Tesla By A Mile. Here's How To Play Them.

Here is the article. 

Investors who want off the Tesla stock roller-coaster ride should consider other, more sedated names in transportation and logistics for steady growth.

Long-term time frames give investors market opportunities in transport names, Jay Woods, chief global strategist at Freedom Capital Markets, tells Investor's Business Daily's "Investing with IBD" podcast. U.S. cargo carriers Matson (MATX) and Kirby (KEX) are already outperforming Tesla year to date.

Kirby stock has jumped 52% so far this year, and Matson has climbed 25%. Tesla stock has lost nearly 15% in 2024.

The Long-Term Look At Tesla Stock

Tesla (TSLA) stock can be a roller-coaster ride for investors — something Woods knows from personal experience. He chronicled his then 14-year-old son's efforts to invest in Tesla on social media platform Twitter (now called X). The effort ended when the Woods family sold out of the stock right before Covid hit in March 2020 — but Woods says that's not when the saga over Tesla stock ended.

Audio Version Of Podcast Episode

In March of 2020, "[My son] texted me in the middle of his class in high school, saying it's time to get back in," said Woods. "I threw the phone onto my terminal — I can't be on the phone while I'm trading on the NYSE — and I didn't buy the stock." He says his son came within five dollars of Tesla stock's lows, with shares skyrocketing from there. Since March 2020, shares of Tesla have gained nearly 500% in value to date.

Just don't tell that to Woods. "Shame on me, I didn't buy in the five shares when it was under 400, and we missed that boat," he said. "I'll never live it down."

But taking that route is a wild ride of emotions, including euphoria and despair. While Tesla stock is up considerably from a longer time frame, shares have massively underperformed since hitting all-time highs in 2021.

Tesla stock is currently ranked No. 4 in the Auto Manufacturers Group and holds an IBD Composite Rating of 46 according to IBD Research.

Transport Names For The Long Haul Investor

Investing in a longer-term time frame means some slow-and-steady names like Matson stock and Kirby stock can be more appealing to investors looking to buy and hold.

Kirby is a marine transporter that operates tank barges across the United States, particularly on the Mississippi River, transporting cargo like energy and agricultural products.

Shares of Kirby are currently forming a flat base and trading near their 50-day line. Kirby stock ranks No. 6 in the Transportation-Shipping Group, and has an IBD Composite Rating of 91, according to IBD Research.

Traders potentially could look at the 120 price level as an area to initiate a position if Kirby stock can clear resistance.

Matson is a container shipping and logistics company with a focus on shipping to Hawaii. Shares of Matson have been steadily marching higher since breaking out of a consolidation over the summer. The stock currently holds a Composite Rating of 97 and ranks No. 2 in the Transportation Shipping group, according to IBD Research.

While Matson stock is extended from its last breakout area, traders could use a bounce off the 10-week moving average as a potential entry point.

"What we've seen from the shippers, fundamentally, they've been knocking it out of the park lately," said Woods. "The strong demand is there."

Time Frame For Tesla Vs. Boring Stocks

Woods says to keep a time frame in mind, advice he told his son when trading Tesla stock. "Make the trade your own. Everyone has different time frames."

"This, to me, is slow, steady nice progression," said Woods. "You may get a run here or there, but it's boring. It moves like a tanker." But boring is a great characteristic for a long-term investment, says Woods.

"If you want something that's boring and a nice uptrend, and has a good risk-reward setup, I give you Matson," he said. "It's been there for a long time, but the shippers don't ever seem to get any love."


No comments:

Post a Comment