Saturday, December 06, 2008

Stocks Which Benefit from Low Oil Prices

With the price of oil dropping below $41 per barrel, now is the time to look for the companies would benefit from these lower prices. These are the companies that have oil and gasoline as one of their major expenses.

Obviously, the package delivery companies would be beneficiaries. For example, there is United Parcel Service, Inc. (UPS), which happens to be one of Warren Buffett's holdings. UPS has a forward PE of 16 and a PEG ratio of 1.33, with a yield of 3.2%.

Then f course, there is FedEx Corporation (FDX) with a PE of 23, a PEG of 1.07, and a yield of 0.6%.

Other companies that should benefit are the truckers. One of the largest is JB Hunt Transport Services Inc. (JBHT). The stock has a PE of 17 and a PEG of 1.38, with a yield of 1.5%.

Landstar System Inc. (LSTR) has a PE of 14 and a PEG of 0.96. It pays a yield of 0.5%.

Heartland Express Inc. (HTLD) has a PE of 21 and a PEG of 1.95. It yields 0.5%.

Knight Transportation Inc. (KNX) has a PE of 24 and a PEG of 1.71. It pays a yield of 1.1%.

Werner Enterprises Inc. (WERN) has a PE of 20 and a PEG of 1.98. The yield is 1.2%.

Con-Way, Inc. (CNW) has a PE of 8 and a PEG of 0.75, with a yield of 1.6%.

Author owns UPS and FDX.


No comments: