The iShares Transportation Average ETF (NYSEArca: IYT), the tracking exchange traded fund for the Dow Jones Transportation Average, and rival transportation ETFs have struggled this year. However, some technical analysts believe the worst is behind cyclical transports.

Railroad stocks have been falling off this year, but the decent dividends, low valuations and continued economic growth may provide a cheap entry point for investors looking into the industry, reports Jeff Reeves for MarketWatch.

So far this year, the railway industry has been weakening on lower rail traffic after the drop in energy prices, notably from oil and coal companies. Over the first 35 weeks of the year, U.S. railroads experienced cumulative volume that was down more than 4% year-over-year. However, the pressures may have already been priced in, and the industry has a number of factors that will help support further growth.

Many railroad companies have become more efficient, cutting costs wherever they can, which should help bolster their bottom line ahead. Additionally, market observers are optimistic about a cyclical recovery where U.S. consumers and businesses spend more, which would add to increased activity through railways and transportation sectors. Railroads are popular plays among some of the largest investors, including Bill Gates and Warren Buffett. [Sector ETF to Play Warren Buffett, Bill Gates’ Pick]