LFL, ALK, UAL, FDX And DAL, 5 Transportation Stocks Pushing The Industry Lower

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 153 points (1.0%) at 15,456 as of Tuesday, May 28, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,106 issues advancing vs. 846 declining with 109 unchanged.

The Transportation industry currently sits up 1.3% versus the S&P 500, which is up 0.9%. A company within the industry that increased today was Ryanair Holdings ( RYAAY), up 2.21.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. LATAM Airlines Group S.A ( LFL) is one of the companies pushing the Transportation industry lower today. As of noon trading, LATAM Airlines Group S.A is down $0.23 (-1.2%) to $18.40 on light volume Thus far, 102,370 shares of LATAM Airlines Group S.A exchanged hands as compared to its average daily volume of 436,800 shares. The stock has ranged in price between $18.28-$18.64 after having opened the day at $18.57 as compared to the previous trading day's close of $18.63.

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services primarily in South America. LATAM Airlines Group S.A has a market cap of $9.1 billion and is part of the services sector. The company has a P/E ratio of 621.0, above the S&P 500 P/E ratio of 17.7. Shares are down 20.9% year to date as of the close of trading on Friday.

TheStreet Ratings rates LATAM Airlines Group S.A as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Get the full LATAM Airlines Group S.A Ratings Report now.

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4. As of noon trading, Alaska Air Group ( ALK) is down $1.36 (-2.3%) to $57.27 on average volume Thus far, 478,457 shares of Alaska Air Group exchanged hands as compared to its average daily volume of 923,000 shares. The stock has ranged in price between $57.01-$59.41 after having opened the day at $59.27 as compared to the previous trading day's close of $58.63.

Alaska Air Group, Inc., through its subsidiaries, provides scheduled air transportation for passengers and cargo. Alaska Air Group has a market cap of $4.1 billion and is part of the services sector. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are up 36.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Alaska Air Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Alaska Air Group Ratings Report now.

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3. As of noon trading, United Continental Holdings ( UAL) is down $0.28 (-0.8%) to $34.09 on light volume Thus far, 1.1 million shares of United Continental Holdings exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $33.79-$34.90 after having opened the day at $34.63 as compared to the previous trading day's close of $34.37.

United Continental Holdings, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company operates in six continents from its hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark, San Francisco, Tokyo, and Washington, D.C. United Continental Holdings has a market cap of $11.5 billion and is part of the services sector. Shares are up 47.0% year to date as of the close of trading on Friday.

TheStreet Ratings rates United Continental Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins. Get the full United Continental Holdings Ratings Report now.

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2. As of noon trading, FedEx Corporation ( FDX) is down $0.86 (-0.9%) to $96.96 on heavy volume Thus far, 2.1 million shares of FedEx Corporation exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $96.61-$99.10 after having opened the day at $98.82 as compared to the previous trading day's close of $97.82.

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FedEx Corporation has a market cap of $31.0 billion and is part of the services sector. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Friday.

TheStreet Ratings rates FedEx Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full FedEx Corporation Ratings Report now.

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1. As of noon trading, Delta Air Lines ( DAL) is down $0.23 (-1.2%) to $18.70 on light volume Thus far, 4.8 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13.9 million shares. The stock has ranged in price between $18.58-$19.25 after having opened the day at $19.12 as compared to the previous trading day's close of $18.93.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. Its route network is centered around a system of hub and international gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $16.2 billion and is part of the services sector. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. Shares are up 59.5% year to date as of the close of trading on Friday.

TheStreet Ratings rates Delta Air Lines as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full Delta Air Lines Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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