Oil’s plunge is a plus for these two growth stock picks

Article Excerpt

These two growth stock picks face slowing growth caused by weakness in the economy, but fuel is a key cost for both of them, so these growth stock picks stand to gain from the recent plunge in oil prices. ARKANSAS BEST CORP. $28 (Nasdaq symbol ABFS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 25.3 million; Market cap: $708.4 million; WSSF Rating: Average), provides less-than-truckload shipping services, which combine freight from multiple customers into a single truck. Arkansas Best carries freight that includes food, textiles, apparel and furniture. Higher fuel costs have hurt Arkansas Best’s earnings growth this year. As well, its labour costs increased because of a new deal with its main union. However, one of the main advantages of the new union contract is that it gives Arkansas Best more flexibility over schedules and other items, which should let it expand its same-day or next-day delivery service to the western United States. Right now, the company operates mainly in the…