Trucking and Transports Could Get Boost from Housing Recovery (IYT)

With housing starts and existing home sales both beating estimates this week, the argument that we are in the early stages of a recovery in housing can be made. The PDR S&P Homebuilders (NYSE: XHB), an ETF that tracks equities tied to homebuilders, is up over 26 percent year-to-date. The relatively high prices in this sector have many looking for new ways to invest in the housing recovery, which is leading some to take a closer look at the Dow Jones Transportation ETF (NYSE: IYT).

According to Bob Costello, chief economist for the American Trucking Association, a further improvement in construction will mean a boon for the trucking business.

Others in the industry agree. In a phone interview, Derek Leathers, president of trucking company, Werner (NASDAQ: WERN), told Bloomberg that "an incremental improvement in housing starts will be a net positive for our industry."

Other cyclical stocks related to transportation and housing could also see improvements if housing rebounds. The big question on everyone's mind now is whether or not the housing recovery is real.

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