3 Stocks Dragging 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 65 points (-0.4%) at 15,111 as of Friday, June 14, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 2,604 issues advancing vs. 474 declining with 57 unchanged.

The Transportation industry currently sits down 0.18 versus the S&P 500, which is down 0.25.

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

3. 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 $0.28 (-1.6%) to $17.13 on light volume Thus far, 141,945 shares of LATAM Airlines Group S.A exchanged hands as compared to its average daily volume of 519,100 shares. The stock has ranged in price between $17.03-$17.55 after having opened the day at $17.40 as compared to the previous trading day's close of $17.41.

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 $8.0 billion and is part of the services sector. The company has a P/E ratio of 553.0, above the S&P 500 P/E ratio of 17.7. Shares are down 26.1% year to date as of the close of trading on Thursday. Currently there are no analysts that rate LATAM Airlines Group S.A a buy, 4 analysts rate it a sell, and 4 rate it a hold.

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.

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, Canadian National Railway ( CNI) is down $0.58 (-0.6%) to $98.96 on average volume Thus far, 310,275 shares of Canadian National Railway exchanged hands as compared to its average daily volume of 715,400 shares. The stock has ranged in price between $98.75-$100.00 after having opened the day at $99.69 as compared to the previous trading day's close of $99.54.

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. Canadian National Railway has a market cap of $41.4 billion and is part of the services sector. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7. Shares are up 9.4% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Canadian National Railway a buy, 1 analyst rates it a sell, and 16 rate it a hold.

TheStreet Ratings rates Canadian National Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Canadian National Railway 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, Canadian Pacific Railway ( CP) is down $0.62 (-0.5%) to $123.85 on average volume Thus far, 380,435 shares of Canadian Pacific Railway exchanged hands as compared to its average daily volume of 887,800 shares. The stock has ranged in price between $122.72-$125.16 after having opened the day at $124.01 as compared to the previous trading day's close of $124.47.

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 $21.5 billion and is part of the services sector. The company has a P/E ratio of 38.8, above the S&P 500 P/E ratio of 17.7. Shares are up 22.5% year to date as of the close of trading on Thursday. 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.

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 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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