Wabash National Corporation’s (NYSE:WNC) stock surge is due to far more than just a “Trump Bump,” according to The Motley Fool.
FedEx Corporation's (NYSE:FDX) rapidly rising ground shipments and ongoing fleet expansions by logistics players like J.B. Hunt Transport Services' (NASDAQ:JBHT) likely wil continue to contribute to Wabash’s bull run, The Motley Fool reported.
Higher freight tonnage should boost demand for trailers as carriers replace and expand their fleets. J.B. Hunt, for instance, has already outlined plans to replace 2,500 and buy 500 new trailers this year as part of its $477 million capital spending program.
Meanwhile, courier service companies like FedEx are pumping big sums of money into ground operations to exploit the e-commerce boom. At the beginning of its ongoing 2017 fiscal year in June, FedEx projected $2 billion worth of capital expenditures on facility expansions and equipment purchases for FedEx Ground for the year. Later in 2016, management hinted at similar spends on FedEx Ground for fiscal 2018.
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