5 Stocks Underperforming Today In The Transportation Industry

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 2.65, and United Parcel Service Inc (UPS) Class B ( UPS), down 0.28.

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

5. Southwest Airlines ( LUV) is one of the companies pushing the Transportation industry lower today. As of noon trading, Southwest Airlines is down $0.12 (-0.8%) to $13.52 on light volume Thus far, 2.7 million shares of Southwest Airlines exchanged hands as compared to its average daily volume of 7.5 million shares. The stock has ranged in price between $13.40-$13.68 after having opened the day at $13.57 as compared to the previous trading day's close of $13.63.

Southwest Airlines Co. operates passenger airlines that provide scheduled air transportation services in the United States. As of December 31, 2012, the company operated 694 aircraft, including 606 Boeing 737 aircraft and 88 Boeing 717 aircraft. Southwest Airlines has a market cap of $10.1 billion and is part of the services sector. The company has a P/E ratio of 27.3, above the S&P 500 P/E ratio of 17.7. Shares are up 33.1% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Southwest Airlines a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Southwest Airlines 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, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Southwest Airlines Ratings Report now.

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

4. As of noon trading, US Airways Group ( LCC) is down $0.54 (-3.2%) to $16.41 on average volume Thus far, 4.3 million shares of US Airways Group exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $16.34-$17.08 after having opened the day at $16.92 as compared to the previous trading day's close of $16.95.

US Airways Group, Inc., through its subsidiaries, provides air transportation for passengers and cargo. US Airways Group has a market cap of $2.9 billion and is part of the services sector. The company has a P/E ratio of 5.4, below the S&P 500 P/E ratio of 17.7. Shares are up 25.6% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate US Airways Group a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates US Airways Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels and notable return on equity. 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 US Airways Group Ratings Report now.

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

3. As of noon trading, United Continental Holdings ( UAL) is down $0.93 (-3.0%) to $30.31 on average volume Thus far, 2.0 million shares of United Continental Holdings exchanged hands as compared to its average daily volume of 4.3 million shares. The stock has ranged in price between $30.29-$31.46 after having opened the day at $31.20 as compared to the previous trading day's close of $31.24.

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 $10.8 billion and is part of the services sector. Shares are up 33.6% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate United Continental Holdings a buy, 1 analyst rates it a sell, and 6 rate it a hold.

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.

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

2. As of noon trading, Delta Air Lines ( DAL) is down $0.20 (-1.1%) to $17.36 on light volume Thus far, 4.1 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13.5 million shares. The stock has ranged in price between $17.26-$17.79 after having opened the day at $17.50 as compared to the previous trading day's close of $17.56.

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 $15.5 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 47.9% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Delta Air Lines a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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.

STOCKS TO BUY: 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, FedEx Corporation ( FDX) is down $0.39 (-0.4%) to $96.70 on light volume Thus far, 718,684 shares of FedEx Corporation exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $96.42-$97.52 after having opened the day at $97.01 as compared to the previous trading day's close of $97.09.

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 $31.2 billion and is part of the services sector. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 5.9% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate FedEx Corporation a buy, 1 analyst rates it a sell, and 4 rate it a hold.

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.

STOCKS TO BUY: 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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