Genesee & Wyoming Inc. (GWR): Today's Featured Transportation Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Genesee & Wyoming ( GWR) pushed the Transportation industry higher today making it today's featured transportation winner. The industry as a whole closed the day down 0.2%. By the end of trading, Genesee & Wyoming rose $1.06 (1.5%) to $71.97 on light volume. Throughout the day, 239,652 shares of Genesee & Wyoming exchanged hands as compared to its average daily volume of 585,400 shares. The stock ranged in a price between $71.21-$72.23 after having opened the day at $71.36 as compared to the previous trading day's close of $70.91. Other companies within the Transportation industry that increased today were: FreeSeas ( FREE), up 5.4%, Patriot Transportation Holdings ( PATR), up 4.8%, Sino-Global Shipping America ( SINO), up 4.4%, and Central North Airport Group ( OMAB), up 4%.
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Genesee & Wyoming Inc. owns and operates short line and regional freight railroads, and provides railcar switching services in the United States, Australia, Canada, the Netherlands, and Belgium. Genesee & Wyoming has a market cap of $3.62 billion and is part of the services sector. The company has a P/E ratio of 24.8, equal to the average transportation industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 18.9% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Genesee & Wyoming a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Genesee & Wyoming as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Pacer International ( PACR), down 19%, DS Torm ( TRMD), down 8.5%, Kirby ( KEX), down 6.8%, and Frozen Food Express Industries ( FFEX), down 6.7%, were all laggards within the transportation industry with Delta Air Lines ( DAL) being today's transportation industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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