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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (282591)	10/11/2010 3:52:23 PM
From: tejek	Respond to of 306849

Tight Capacity, Aging Fleets Aid Truck Sales Truck makers surged Tuesday after an analyst noted strong heavy-truck orders in August and forecast steady demand the rest of the year. Navistar (NAV) surged 7% in heavy volume. The stock remains deep in a correction. Competitor Paccar (PCAR) jumped 4% in moderate trade as it cleared a 23-week consolidation. Commercial Vehicle Group (CVGI), which supplies seats and components for heavy-duty trucks, spiked 10% in better than double its average trade. It's also basing. All three stocks are in IBD's Trucks & Parts-Heavy Duty industry group. The group ranked No. 53 in Tuesday's edition, down from No. 29 three weeks ago. Orders for Class 8 trucks broke the 15,000 mark for only the second time since August 2008, according to a report from Jefferies & Co. Class 8 trucks include anything over 33,000 pounds of gross vehicle weight, including tractor-trailers. Analyst Stephen Volkmann has buy ratings on both Navistar and Paccar. Despite recent growth concerns, Volkmann says, "we believe the recovery has begun, and the trucking industry remains healthy and capacity remains tight." Tight capacity means companies will need to order trucks even in a slower environment, the report said. It forecast orders would continue to increase through the fall. The report said the average age of trucks in the North American fleet had climbed to near seven years, vs. a more typical average of five. That suggests, Volkmann said, that "pent-up replacement demand should drive some buying in (the second half of the year," even in the face of more stringent and costly emissions regulations. China Yuchai International (CYD) holds the group's strongest EPS Rating, a 97. It cleared a two-month high on Tuesday. Cummins (CMI) holds the top EPS Rating among U.S.-based stocks in the group, an 87. The stock is making new highs. investors.com