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6 Stocks to Benefit From Truckers' Switch to Natural Gas

Written by: Frank Byrt 04/30/12 - 8:51 AM EDT
Tickers in this article: CMI NAV CLNE PCAR QTWW

In announcing March 21 that it has begun development of a 15-liter heavy-duty, spark-ignited natural gas engine to meet demand for on-highway applications, the company said it "believes that there is a strong market for engines powered by an alternative to diesel fuel." It has already started producing on-highway natural gas powered engines for Cummins Westport, its joint venture with Westport Innovations in Vancouver, B.C.

Dividend Yield: 1.38%

Investor takeaway: Its shares are up 32% this year and have a three-year, average annual return of 53%. Analysts give its shares eight "buy" ratings, four "buy/holds," seven "holds," and one "weak hold," according to a survey of analysts by S&P. Analysts estimate it will earn $10.36 per share this year and that will grow by 13% to $11.68 per share next year. S&P has it rated "strong buy" with a $152 price target, a 31% premium to the current price.

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2. PACCAR(PCAR)

Company profile: PACCAR, with a market value of $16 billion, designs and manufactures light-, medium- and heavy-duty trucks and aftermarket parts under the brands Kenworth, Peterbilt and DAF.

Dividend Yield: 1.67%

Investor takeaway: Its shares are up 15.6% this year and have a three-year, average annual return of 9.3%. Analysts give its shares nine "buy" ratings, and 12 "holds," according to a survey of analysts by S&P.

S&P has it rated "strong buy," with a $66 price target, a 55% premium to its current price and says "we think the company is in the midst of a multi-year up-cycle in North America, and near the start of a new cycle in Europe."

3. Navistar International(NAV)

Company profile: Navistar, with a market value of $2 billion, is a leading manufacturer of commercial trucks, buses, diesel engines, chassis, and military vehicles.

Investor takeaway: Its shares are down 10% this year and have a three-year, average annual loss of 0.4%. Analysts give its shares 10 "buy" ratings, two "buy/holds," five "holds," and one "weak hold," according to a survey of analysts by S&P.

4. Clean Energy Fuels(CLNE)