Wabash Stock is “Ice Cold”

Wabash Trucking

I hope that everyone had a wonderful Christmas, if you celebrated. Over the holiday weekend, I received a new telescope from my daughter, while she is now eager to use her first bicycle. Despite concerns of supply chain armageddon this year, it appears that products were still flying off the shelves. The incredible gains made by Amazon.com and Walmart over the last year have solidified their massive advantage and stranglehold over the supply chains. As I write this, Amazon stock now sits north of $3,400. 

A push to $4,000 per share and market capitalization of $2 trillion in 2022 appears in the cards. 

The Trend is Your Friend

According to McKinsey, the COVID-19 pandemic drove an incredible 75% of consumers to adapt their buying behaviors due to “economic pressures, store closings, and changing priorities.” Americans are trying new brands. They’re turning to private labels. And they’re shaking up their product loyalty due to a new abundance of brands. 

Of course, a lot of this behavior has been driven by a massive shift in ecommerce demand. According to IBM, the COVID-19 outbreak pushed forward the demand from ecommerce shopping by four to six years. 

This chart below is further evidence of the expected growth in online shopping demand in the years ahead. 

The chart offers new insight into how much expected growth we will see in specific categories. At the top sits over-the-counter medication, an industry that Amazon has aggressively entered over the last few years. In 2020, the company purchased medicine delivery service PillPack.

Meanwhile, Walmart has experienced tremendous growth through its grocery delivery platform. They are already the largest brick-and-mortar grocery store and discount retailer in the United States

Delivery Drones and Autonomous Demand Good for Wabash

The acceleration of ecommerce (a five-year move forward) can only mean an uptick in automation and robotics in the years ahead. This includes an uptick in drone capacity, autonomous delivery vehicles, and last-mile storage. That latter trend – required for medication and groceries – is good news for a trucking engineering company called Wabash National Corporation (NYSE:WNC).

Just two weeks ago, the company announced plans to launch a walk-in cargo van by 2023. This is the latest for its portfolio of home delivery solutions. The company was a visionary leader when it created advanced biotech solutions to deliver cold-storage solutions. This is crucial for vaccines and other medications that require specific refrigeration. 

Wabash stock has been a stronger momentum stock since its pullback in July. It just received a $25 price target after announcing these new vans from DA Davison analysts. 

Add it to your watch list or consider using cash-secured puts to start a position if you’re looking to capitalize on an under-the-radar transportation stock.

Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.
Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.

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