Trucking Sector Sinks On Valuation, Growth Outlook

Sky-high stock prices in the trucking sector and prospects for slower 2015 growth sent the sector skidding lower Wednesday.

With a cyclical demand uptick likely to diminish next year, along with growing price competition and increasingly difficult quarterly comparisons, Credit Suisse's Allison M. Landry downgraded C.H. Robinson Worldwide, Inc. CHRW Thursday to Underperform, from Neutral.

Earlier this week, Robinson beat third-quarter expectations; on Thursday, both Old Dominion Freight Line ODFL and Con-way Inc CNW offered similar upside surprises.

J.B. Hunt Transport Services, Inc.JBHT Landstar System, Inc. LSTR have also posted for the recent quarter and both beat Street views.

Roadrunner Transportation Systems Inc RRTS missed third-quarter expectations by a penny Wednesday.

Much of the sector retreated Thursday from near 52-week highs.

Roadrunner fell nearly 8 percent to $20.28 a share. Similarly Con-way and Old Dominion were each off nearly 4 percent in morning trading Thursday.

Robinson fell more than 3 percent to 69.74 a share, while J.B.Hunt was off nearly 1 percent to $79.11.