The Dow Jones Transportation ETF has been crushing the market with a gain of 19.6% the past six months versus 7.6% for SPDR Dow Jones Industrial Average.
Yet Jefferies analysts think the transportation sector’s outperformace will continue this year.
“2013 is poised to be the year of transports,” Peter Nesvold and Tavio Headley, analysts at Jefferies, wrote in a client note, according to an Investor’s Business Daily report.
“We believe that this rally still has legs, given nascent signs of wholesale restocking and continued strength in auto sales and housing prices,” Jefferies analysts wrote. “Accordingly, we see another 15 or so points of outperformance left in the group based on the historical swings.”
iShares Dow Jones Transportation Average Index Fund
