Transportation stocks and sector-related exchange traded funds are gaining momentum and are back above their long-term trend lines after the third largest U.S. railroad company reported first quarter results.

Over the past three months, the iShares Transportation Average ETF (NYSEArca: IYT) increased 18.5% and the SPDR S&P Transportation ETF (NYSEArca: XTN) gained 22.8%. Both IYT and XTN have broken above their long-term resistance earlier this week, trading above their 200-day simple moving average.

The transportation sector has benefited from their relatively low expectations due to a struggling energy sector and the slower industrial economy, reports Alex Rosenberg for CNBC.

For example, CSX Corp. (NasdaqGS: CSX) recently reported profits declined 20% in the first quarter year-over-year and revenue was 14% lower, matching and missing expectations, respectively, as coal sales declined. However, CSX still bounced higher in what may be attributed to the company’s move toward cost savings.

“While CSX delivered strong efficiency gains in the first quarter, we continue to expect full-year earnings per share to decline in 2016 as a result of ongoing coal headwinds combined with other market fundamentals,” Michael J. Ward, chairman and CEO, said. “At the same time, CSX remains focused on meeting and exceeding customer expectations while driving further efficiency savings to maximize shareholder value and achieve a mid-60s operating ratio longer term.”

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