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The market correction is creating a solid buying opportunity for long-term investors. It's a good time to start picking up cheap shares and setting up your portfolio for some big gains for 2012. One area that has been hit hard is the transportation sector. This is mostly due to the fact that many companies in the transportation sector are highly sensitive to the economy. In bad times, the demand usually drops for these companies. However, one benefit is that the price of oil has been dropping over economic concerns and that can help boost profit margins for many of these companies.

If you buy at or near the recent lows, you could end up just about doubling your money if these stocks hit the price targets set by analysts this year. Most analysts set price targets based on where they believe the stock should be trading at in the next 12 months or so. Here are the transportation sector stocks that have price targets that are around double the current price:

United Continental Holdings Inc., (NYSE:UAL) shares are trading at $18.81. United is a major global airline. The 50-day moving average is $19.44 and the 200-day moving average is $21.93. The shares have traded in a range between $15.92 to $29.59 in the past 52 weeks. UAL is estimated to earn about $3.66 per share in 2011 and $5.11 in 2012. This puts the PE ratio at just over 5. Book value is listed at $5.80 per share. Oil prices have been dropping and that is a huge plus for lowering the fuel costs of this major airline. A recession will lower fuel costs even more and that will act as a counter balance if revenue comes in lower. UBS has set a $36 price target for UAL shares.

Delta Airlines (NYSE:DAL) shares are trading at $8.25. Delta is a major global airline. The 50-day moving average is $7.97 and the 200-day moving average is $9.33. The shares have traded in a range between $6.41 to $14.54 in the past 52 weeks. DAL is estimated to earn about $1.19 per share in 2011 and $2.11 in 2012. This puts the PE ratio at about 6. Book value is listed at $1.44 per share. These shares are trading at a substantial discount to the market in terms of PE ratio. The recent drop to these levels looks like a good time to start accumulating. Barclays Capital has set a $16 price target for DAL shares.

Royal Caribbean Cruises (NYSE:RCL) shares are trading at $28.25. RCL is a major cruise line company, based in Miami. The 50-day moving average is $24.81 and the 200-day moving average is $35.10. The shares have traded in a range between $18.70 to $49.99 in the past 52 weeks. Earnings estimates for RCL are for a profit of $2.88 per share in 2011 and $3.24 in 2012. RCL is facing a number of challenges and the possibility that a slower global economy will reduce bookings. However, one positive is that oil prices have fallen in recent weeks and that greatly reduces fuel costs for this cruise line. Barclays Capital has an overweight rating and a $49 price target for RCL shares.

Dry Ships (NASDAQ:DRYS) shares are trading at $2.70. Dry Ships operates drybulk ships and drilling rigs. The 50-day moving average is $2.71 and the 200-day moving average is $3.90. The shares have traded in a range between $1.75 to $6.44 in the past 52 weeks. The earnings estimates for DRYS are 44 cents for 2011, and 58 cents for 2012. DRYS now trades for about 4 times forward earnings. Barclays Capital has set a $4.50 price target and Deutsche Bank had previously set a $7 target.

Skywest Inc. (NASDAQ:SKYW) shares are trading at $11.51. Skywest is a major regional airline serving destinations in the United States, Canada, Mexico, and the Caribbean. The 50-day moving average is $12.22 and the 200-day moving average is $14.37. The shares have traded in a range between $10.47 to $17.28 in the past 52 weeks. SKYW is estimated to earn about 6 cents per share in 2011, and $1.27 in 2012. This puts the forward PE ratio at about 7. Book value is listed at $27.37 per share. These shares are trading at a substantial discount to book value. The recent drop looks like a good opportunity to start accumulating. Deutsche Bank has set a $20 price target for SKYW shares.

Southwest Airlines (NYSE:LUV) shares are trading at $8.48. Southwest is a major low-cost airline. The 50-day moving average is $8.39 and the 200-day moving average is $10.61. The shares have traded in a range between $7.15 to $14.32 in the past 52 weeks. LUV is estimated to earn about 39 cents per share in 2011, and 76 cents in 2012. Book value is listed at $8.33 per share. These shares are trading at a discount to the market in terms of PE ratio. The recent drop to these levels looks like a good time to start accumulating. Dahlman Rose has set a $15 price target for LUV shares.

The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made.

Disclaimer: Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes only.

Source: 6 Transportation Stocks That Analysts Expect To Double