Josh Brown and Sean Russo from Ritholtz Wealth Management discuss the significance of transport stocks in the current market landscape, noting that the bull market is shifting focus towards these sectors. Union Pacific (UNP) is highlighted for its potential acquisition of Norfolk Southern, which would create a vast transcontinental network.
UNP has shown impressive growth, with a 21.6% increase over the past year and a record first quarter revenue of $6.2 billion. The stock is currently in a positive trend, with key support levels identified at $260 and $248-$250. J.B. Hunt Transport Services (JBHT) has experienced remarkable growth, up 107% over the past year, driven by rising shipping rates and increased intermodal volumes.
The stock is approaching the $300 mark, with a strong technical picture and support at the 50-day moving average around $253. Both companies are positioned well for continued growth, making them attractive options for investors looking to capitalize on the transport sector's momentum