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IPFS News Link • Stock Market

Rail Stocks Back To All Time Highs As Rail Traffic Collapses

• https://www.zerohedge.com, by Tyler Durden

Consider where rail stocks are trading:

Do fundamentals justify this price? Here is the chart of total carload and intermodal traffic for 2018, 2019 and 2020.

Total U.S. carload traffic for the first five months of 2020 was 4,713,757 carloads, down 14.7 percent, or 815,413 carloads, from the same period last year; and 5,186,630 intermodal units, down 11.3 percent, or 661,703 containers and trailers, from last year.

And another way to see the unprecedented divergence:

U.S. railroads originated 740,171 carloads in May 2020, down 27.7 percent, or 282,965 carloads, from May 2019. U.S. railroads also originated 912,922 containers and trailers in May 2020, down 13 percent, or 136,241 units, from the same month last year. Combined U.S. carload and intermodal originations in May 2020 were 1,653,093, down 20.2 percent, or 419,206 carloads and intermodal units from May 2019.


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