3 Transportation Stocks Pushing Industry Growth

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 87 points (-0.6%) at 14,874 as of Thursday, June 6, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,317 issues advancing vs. 1,603 declining with 125 unchanged.

The Transportation industry currently sits down 0.12 versus the S&P 500, which is down 0.38. On the negative front, top decliners within the industry include LATAM Airlines Group S.A ( LFL), down 2.60, and United Parcel Service Inc (UPS) Class B ( UPS), down 0.62.

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

3. Canadian Pacific Railway ( CP) is one of the companies pushing the Transportation industry higher today. As of noon trading, Canadian Pacific Railway is up $1.08 (0.89) to $122.84 on average volume Thus far, 517,247 shares of Canadian Pacific Railway exchanged hands as compared to its average daily volume of 845,300 shares. The stock has ranged in price between $120.05-$123.83 after having opened the day at $120.91 as compared to the previous trading day's close of $121.76.

Canadian Pacific Railway Limited, through its subsidiaries, operates as a transcontinental railway providing freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States. Canadian Pacific Railway has a market cap of $22.2 billion and is part of the services sector. The company has a P/E ratio of 40.3, above the S&P 500 P/E ratio of 17.7. Shares are up 19.8% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Canadian Pacific Railway a buy, 2 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Canadian Pacific Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Canadian Pacific Railway Ratings Report now.

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2. As of noon trading, Kansas City Southern ( KSU) is up $0.70 (0.67) to $106.62 on light volume Thus far, 239,145 shares of Kansas City Southern exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $105.06-$107.84 after having opened the day at $105.98 as compared to the previous trading day's close of $105.92.

Kansas City Southern, through its subsidiaries, engages in the freight rail transportation business. Kansas City Southern has a market cap of $12.0 billion and is part of the services sector. The company has a P/E ratio of 29.5, above the S&P 500 P/E ratio of 17.7. Shares are up 27.1% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Kansas City Southern a buy, 2 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Kansas City Southern 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Kansas City Southern Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, CSX ( CSX) is up $0.15 (0.62) to $24.37 on average volume Thus far, 3.8 million shares of CSX exchanged hands as compared to its average daily volume of 6.8 million shares. The stock has ranged in price between $24.12-$24.54 after having opened the day at $24.24 as compared to the previous trading day's close of $24.22.

CSX Corporation, together with its subsidiaries, provides rail-based transportation services. It offers traditional rail services, and transports intermodal containers and trailers. CSX has a market cap of $25.3 billion and is part of the services sector. The company has a P/E ratio of 13.7, below the S&P 500 P/E ratio of 17.7. Shares are up 22.8% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate CSX a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates CSX as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full CSX Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 3 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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