In all my years in writing, I have had the tendency to have a pretty narrow focus on the companies I discuss. I am often asked about the other equities I have in my portfolio, and sometimes offer up a few of the stocks that interest me. In the coming week or so, I see some potential upside for an equity I have owned and traded for years - Landstar System, Inc (LSTR).
I was first exposed to Landstar through conversations with fellow investors in Sirius XM (SIRI) many years ago. Satellite radio is popular with truckers, and it was through my writing that I came across a shareholder in Sirius XM who was also a truck driver. He gave Landstar high praises and suggested that I look into the company. I did just that and made an investment.
When I invest in a company I tend continue my research. In my line of business, I come across a lot of truck drivers delivering goods to projects I am associated with. I began to inquire with regular drivers about Landstar and those conversations led me to believe that Landstar carried a good reputation amongst the community of professional drivers. I have been following news on Landstar and have been invested in the company one way or another ever since.
Last week JB Hunt (JBHT), another icon in this sector, announced earnings that beat the street by a good margin. Its stock appreciated nicely on the news. Landstar is set to announce earnings on April 26th. What I see potential for is that Landstar will announce rising metrics in much the same way JB hunt did. This could send Landstar to yet another 52-week high in the near term. As impressive as this is, consider that Landstar was trading at about $37 only six months ago.
What we have here is an opportunity. With JB Hunt already reporting in a sector that tends to benefit in the same manner from changes in the economy, we can already begin to make some educated guesses as to the results Landstar will report. The caution comes in that Landstar is at new highs already and may well need to settle down after the results are issued. Savvy investors in Landstar need to develop their strategies now, because I see this stock running into earnings and then settling down after. It will still be a strong investment in my opinion, however, it will also need to be an equity that needs to take a small breather.
Watch Landstar closely in the coming week-and-a-half.
Disclosure: I am long LSTR.
Additional disclosure: I have no position in JBHT