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The Transportation industry as a whole closed the day down 0.6% versus the S&P 500, which was up 0.1%. Laggards within the Transportation industry included

Overseas Shipholding Group

(

OSGB

), down 1.9%,

Pangaea Logistics Solutions

(

PANL

), down 13.5%,

Box Ships

(

TEU

), down 2.1%,

Global Ship Lease

(

GSL

), down 3.0% and

Guangshen Railway

(

GSH

), down 3.4%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Global Ship Lease

(

GSL

) is one of the companies that pushed the Transportation industry lower today. Global Ship Lease was down $0.12 (3.0%) to $3.87 on light volume. Throughout the day, 17,740 shares of Global Ship Lease exchanged hands as compared to its average daily volume of 63,000 shares. The stock ranged in price between $3.83-$4.01 after having opened the day at $4.01 as compared to the previous trading day's close of $3.99.

Global Ship Lease, Inc. owns and leases containerships under long-term fixed-rate charters to container shipping companies. As of March 31, 2014, it owned 17 vessels with a total capacity of 66,349 twenty-foot equivalent units. The company is based in London, the United Kingdom. Global Ship Lease has a market cap of $187.8 million and is part of the services sector. Shares are down 33.6% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Global Ship Lease

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on GSL go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Marine industry average. The net income has decreased by 7.5% when compared to the same quarter one year ago, dropping from $7.26 million to $6.72 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Marine industry and the overall market on the basis of return on equity, GLOBAL SHIP LEASE INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has significantly decreased to -$4.10 million or 126.32% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • GLOBAL SHIP LEASE INC's earnings per share declined by 13.3% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has managed its earnings and share float. We anticipate this stability to falter in the coming year and, in turn, the company to deliver lower earnings per share than prior full year. During the past fiscal year, GLOBAL SHIP LEASE INC's EPS of $0.68 remained unchanged from the prior years' EPS of $0.68. For the next year, the market is expecting a contraction of 105.1% in earnings (-$0.04 versus $0.68).
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, GSL has underperformed the S&P 500 Index, declining 19.56% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

You can view the full analysis from the report here:

Global Ship Lease Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

Box Ships

(

TEU

) was down $0.02 (2.1%) to $0.82 on light volume. Throughout the day, 67,223 shares of Box Ships exchanged hands as compared to its average daily volume of 166,200 shares. The stock ranged in price between $0.81-$0.86 after having opened the day at $0.85 as compared to the previous trading day's close of $0.84.

Box Ships Inc., a shipping company, is engaged in the seaborne transportation of containers worldwide. As of December 31, 2013, it had a fleet of 9 containerships with a total capacity of approximately 43,925 twenty-foot equivalent units. Box Ships has a market cap of $20.7 million and is part of the services sector. Shares are down 74.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Box Ships a buy, 2 analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates

Box Ships

as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on TEU go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Marine industry average. The net income increased by 16.6% when compared to the same quarter one year prior, going from $4.84 million to $5.65 million.
  • The gross profit margin for BOX SHIPS INC is rather high; currently it is at 57.67%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, TEU's net profit margin of 48.00% significantly outperformed against the industry.
  • TEU's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 75.53%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Marine industry and the overall market on the basis of return on equity, BOX SHIPS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

You can view the full analysis from the report here:

Box Ships Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Pangaea Logistics Solutions

(

PANL

) was another company that pushed the Transportation industry lower today. Pangaea Logistics Solutions was down $0.78 (13.5%) to $4.97 on heavy volume. Throughout the day, 70,532 shares of Pangaea Logistics Solutions exchanged hands as compared to its average daily volume of 18,100 shares. The stock ranged in price between $4.89-$5.58 after having opened the day at $5.56 as compared to the previous trading day's close of $5.75.

Pangaea Logistics Solutions has a market cap of $70.8 million and is part of the services sector. Shares are down 42.0% year-to-date as of the close of trading on Friday. Currently there are 7 analysts who rate Pangaea Logistics Solutions a buy, 1 analyst rates it a sell, and 4 rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.