EquityResearch5February2018BarclaysCapitalInc.and/oroneofitsaffiliatesdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.PLEASESEEANALYSTCERTIFICATION(S)ANDIMPORTANTDISCLOSURESBEGINNINGONPAGE14.NorthAmericaTransportationKeyThemesfrom4Q17EarningsTransportsstarted2018onastrongnote,butmuchoftherallyhasdissipatedthrough4Qearnings.Nonetheless,wefindresultsindicativeofastrongeconomyandUStaxreformisdrivingrecordcashconversion(forrails).Largecaptransportvaluationsaretradingatorbelowthemarketinacyclicallyfavorableperiod;andonthesmallcapside,Knightresultssuggestwewerepreviouslytoobearishontruckingfundamentals,