Bill Gunderson's Radio Play of the Day: Airline Stocks. Really

Tickers in this article: ARII GWR JBHT LCC UNP
NEW YORK ( TheStreet) -- Years ago I remember years making a vow to myself that I would never buy an airline stock. If it wasn't rising fuel prices it was the Sept. 11, 2001, attacks. If it wasn't 9/11, it was some problem with the fuselages. It never ends.

History will point to more bankruptcies in this industry than any other sector of our economy. If it is not a pilot strike, it's a mechanics strike and on, and on and on.

But I have been really surprised recently to see the strength in the transportation sector. This is the sector made up of boring stocks such as airlines, railroads and trucking companies.

I own several of those railroad stocks including Union Pacific (UNP) , American Railcar (ARII) , Genesee and Wyoming (GWR) in the accounts that I manage, and they have been anything but boring.

I also own a trucking stock, J B Hunt (JBHT) , which has been very exciting of late. I hate it when a big rig almost runs me off the road on a trip, but I love it when my stocks are hitting new highs.

Let's have a peek at my current list of top-ranked sectors in the market:

Data from Best Stocks Now App

There it is, the transportation sector, ranked just below the biotechs, builders, and health-care stocks -- the same transportation sector that also houses the airlines stocks.

Don't even tempt me. I swore off airlines over a decade ago!

O.K., I will just have a peek at the dessert menu.

Data from Best Stocks Now App

Small- and mid-cap stocks are a sweet spot in the market today. It looks like U.S. Airways (LCC) is not only in a leading sector, but also in a leading asset class right now.

The stock is currently trading at just 5.5 times forward earnings. Desserts are on sale right now. Really?

I am still not tempted.

Data from Best Stocks Now App

The stock has blown away the returns of the market over the last one, three and five years. It is up a whopping 133% over the last 12 months.

Did someone say 5.5 times forward earnings?

Data from Best Stocks Now App

I don't really believe the analysts consensus estimate of 65% growth per year over the next five years. If the company can grow their earnings by 6% or more, I would still be buying it at a discount to earnings.

When I perform my own math on the shares, I come up with a conservative five-year target price of $31. That is substantially higher than the current price of the stock.

No, I swore off airlines a long time ago. I am not going to give in!