Goldman Says Truck Demand Accelerating; Buy Suppliers (DAN, ARM, CMI)

Goldman Sachs GS is out with an investor note this morning that suggests truck demand is accelerating, with “a spate of recent data points reinforcing our view.” Two truck manufacturers announced new truck fleet replacement programs including J.B. Hunt, who signed a 5-year agreement with Navistar NAV to purchase at least 5,000 units. On this news, Goldman believes that you should buy the suppliers, namely ArvinMeritor ARM, Dana DAN, and Cummins CMI. All three stocks are rated “Buy” at Goldman Sachs with upside estimates and growth expectations recently increased by analysts.