Do Rising Stock Prices Mean Good Things for Trucking?
Trucking is an industry where fluctuations are common. Drivers are subject to many federal and state regulations, changes in which can result in major shifts in their work life. Likewise, many different industries rely on American truck drivers to deliver the goods. When any of these industries experiences changes, these changes are reflected in the freight industry as well.
While 2017 has been relatively positive for the freight industry so far, many analysts are watching the market carefully for signs about upward or downward trends in their field. 2016 was a rough year, with many carriers reporting lackluster numbers in terms of demand and revenues. While the American Trucking Associations predicted slow but steady growth over the next decade, many are waiting for hard data to back these predictions up.
A recent change in stock prices for carriers may be the data point that analysts have been looking for. Many trucking companies in both the less-than-truckload and truckload categories have recently seen substantial improvements in stock prices.
Much of the positive speculation has resulted from improved pricing expectations in the coming quarters.
While 2017 is expected to continue a trend of overall positivity, the previous month showed some poor numbers. However, analysts are now viewing this as a result of soft demands carrying over from last year and a period of adjustment during the early part of the year.
There is always the possibility that future changes in the industry could continue to affect stock prices. These rates are subject to change quickly by upward or downward trends in the field. The upcoming ELD mandate deadline could spell big changes for some smaller and medium-sized carriers.
While truck driving is a fundamental industry of the US economy, this doesn’t mean stock prices are always high. The public who buy stocks are very knowledgeable when it comes to routine fluctuations. However, the recent increases do mean positive things for trucking. Carriers of all sizes may see better business going into the final two quarters of the year, and stock prices may continue to reflect these trends.