Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Two out of the three major indices traded up today One out of the three major indices traded up today with the

Dow Jones Industrial Average

(

^DJI

) trading up 14 points (0.1%) at 16,938 as of Monday, June 9, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,888 issues advancing vs. 1,089 declining with 160 unchanged.

The Transportation industry as a whole closed the day up 0.3% versus the S&P 500, which was unchanged. Top gainers within the Transportation industry included

China Metro-Rural Holdings

(

CNR

), up 3.4%,

Rand Logistics

(

RLOG

), up 2.7%,

Covenant Transportation Group

(

CVTI

), up 5.0%,

Diana Containerships

(

DCIX

), up 3.4% and

FreeSeas

(

FREE

), up 2.2%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Covenant Transportation Group

(

CVTI

) is one of the companies that pushed the Transportation industry higher today. Covenant Transportation Group was up $0.57 (5.0%) to $11.96 on light volume. Throughout the day, 12,398 shares of Covenant Transportation Group exchanged hands as compared to its average daily volume of 48,800 shares. The stock ranged in a price between $11.32-$12.13 after having opened the day at $11.39 as compared to the previous trading day's close of $11.39.

Covenant Transportation Group, Inc., together with its subsidiaries, offers truckload transportation and brokerage services in the continental United States. Its Asset-Based Truckload Services segment provides long haul, dedicated, temperature-controlled, and regional solo-driver services. Covenant Transportation Group has a market cap of $139.7 million and is part of the services sector. Shares are up 38.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Covenant Transportation Group a buy, no analysts rate it a sell, and 1 rates 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 Covenant Transportation Group as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from TheStreet Ratings analysis on CVTI go as follows:

  • Net operating cash flow has significantly increased by 58.80% to $11.20 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.90%.
  • COVENANT TRANSPORTATION GRP has improved earnings per share by 30.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COVENANT TRANSPORTATION GRP reported lower earnings of $0.35 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus $0.35).
  • The gross profit margin for COVENANT TRANSPORTATION GRP is currently extremely low, coming in at 8.35%. Regardless of CVTI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CVTI's net profit margin of -0.85% significantly underperformed when compared to the industry average.
  • The debt-to-equity ratio is very high at 2.41 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CVTI maintains a poor quick ratio of 0.96, which illustrates the inability to avoid short-term cash problems.

You can view the full analysis from the report here:

Covenant Transportation Group 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,

Rand Logistics

(

RLOG

) was up $0.16 (2.7%) to $6.16 on average volume. Throughout the day, 14,234 shares of Rand Logistics exchanged hands as compared to its average daily volume of 17,100 shares. The stock ranged in a price between $5.90-$6.17 after having opened the day at $5.95 as compared to the previous trading day's close of $6.00.

Rand Logistics, Inc., through its subsidiaries, provides bulk freight shipping services in the Great Lakes. The company offers domestic port-to-port and River Class bulk freight shipping services. Rand Logistics has a market cap of $108.5 million and is part of the services sector. Shares are up 4.0% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Rand Logistics a buy, no 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 Rand Logistics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on RLOG go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Marine industry. The net income has significantly decreased by 50.8% when compared to the same quarter one year ago, falling from $3.42 million to $1.68 million.
  • Currently the debt-to-equity ratio of 1.94 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.48, which clearly demonstrates the inability to cover short-term cash needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Marine industry and the overall market, RAND LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $8.63 million or 4.33% 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.
  • The gross profit margin for RAND LOGISTICS INC is currently lower than what is desirable, coming in at 29.82%. Regardless of RLOG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.36% trails the industry average.

You can view the full analysis from the report here:

Rand Logistics 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.

China Metro-Rural Holdings

(

CNR

) was another company that pushed the Transportation industry higher today. China Metro-Rural Holdings was up $0.03 (3.4%) to $0.92 on light volume. Throughout the day, 200 shares of China Metro-Rural Holdings exchanged hands as compared to its average daily volume of 12,500 shares. The stock ranged in a price between $0.92-$0.92 after having opened the day at $0.92 as compared to the previous trading day's close of $0.89.

China Metro-Rural Holdings has a market cap of $65.5 million and is part of the services sector. Shares are down 1.1% year-to-date as of the close of trading on Friday.

Highlights from TheStreet Ratings analysis on CNR go as follows:

You can view the full analysis from the report here:

China Metro-Rural Holdings 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.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.