Zacks Analyst Interview Highlights: Arkansas Best Corporation, Con-way, CSX Corporation and...

CHICAGO -- Zacks.com releases the latest Analyst Interview. Today's interview is with equity research analyst Ann H. Heffron, who discusses Arkansas Best Corporation (Nasdaq:ABFS), Con-way, Inc. (NYSE:CNW), CSX Corporation (NYSE:CSX) and UAL Corp. (Nasdaq:UAUA).

A synopsis of today's

What are your top Buy and Sell recommendations at this time, and why?

We have Buys on Arkansas Best Corporation (Nasdaq:ABFS), Con-way, Inc. (NYSE:CNW), and CSX Corporation (NYSE:CSX), and a Sell on UAL Corp. (Nasdaq:UAUA).

Arkansas Best Corporation is a diversified transportation company headquartered in Fort Smith, Arkansas that specializes in less-than-truckload (LTL) truck and intermodal (the movement of freight over a combination of road and rail) services. While first quarter results were disappointing, we still believe that ABFS offers good value due to its virtually debt-free balance sheet, strong operating margins and profitability ratios, and industry-leading dividend yield.

Jacksonville, Florida-based CSX Corporation provides rail freight and intermodal transportation through a rail network of 21,000 miles over which it provides haulage of coal, iron ore, chemicals, automotive products, forest products, agricultural products, metals, fertilizer, consumer products, and minerals in 23 states, the District of Columbia, and two Canadian provinces. An improving domestic economy coupled with increased imports is expected to propel freight volume growth in coal and other sectors, such as food and emerging markets. Moreover, improved pricing due to tight transportation supply and fuel surcharges combined with cost escalation clauses in multi-year customer contracts are driving revenue gains. Our buy recommendation on CSX shares reflects its low valuation relative to peers and our expectation of sold, double-digit earnings growth over the next few years.

California-based Con-way Inc. or CNW (formerly CNF Inc.) is a global provider of supply chain management and related services. It operates businesses in air and ocean freight, customs brokerage, global logistics management, regional trucking, and trailer manufacturing. LTL demand continues robust and freight rates remain relatively healthy (Con-way Freight initiated a 5.5% general rate increase on April 3, 2006), which should drive volume and revenue growth over the near term. Moreover, fuel surcharges should help recoup higher fuel costs and generate top-line gains. We believe that share repurchases, strong projected growth, and industry-leading ROE justify a higher valuation for CNW.

UAL Corporation, parent of United Airlines, is the second largest air carrier in the United States, based on available seat miles. United Airlines operates more than 3,400 flights a day on United, United Express, and Ted to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago, and Washington, D.C. and has key global air rights in the Asia-Pacific region, Europe, and Latin America. While we find much to admire in the UAL story, concerns remain: fuel costs are likely to come in higher than the $50 shown in UAL's projections, competitive conditions continue brutal, and UAL's costs are still too high relative to competitors. Given these factors, we believe the stock is overvalued and recommend a Sell.

Read the full interview at http://at.zacks.com/?id=2647.

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