Tidewater Inc. (TDW): 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

Tidewater ( TDW) pushed the Transportation industry higher today making it today's featured transportation winner. The industry as a whole closed the day up 1.9%. By the end of trading, Tidewater rose $1.35 (2.4%) to $58.76 on light volume. Throughout the day, 455,880 shares of Tidewater exchanged hands as compared to its average daily volume of 646,900 shares. The stock ranged in a price between $57.94-$58.90 after having opened the day at $58.05 as compared to the previous trading day's close of $57.41. Other companies within the Transportation industry that increased today were: Newlead Holdings ( NEWL), up 105.0%, FreeSeas ( FREE), up 64.3%, Frontline ( FRO), up 27.8% and International Shipholding Corporation ( ISH), up 9.9%.
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Tidewater Inc. provides offshore service vessels and marine support services through the operation of a fleet of marine service vessels. Tidewater has a market cap of $2.8 billion and is part of the basic materials sector. The company has a P/E ratio of 18.9, above the S&P 500 P/E ratio of 17.7. Shares are up 28.5% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Tidewater a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Tidewater 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Ultrapetrol Bahamas ( ULTR), down 6.5%, Teekay Tankers ( TNK), down 4.2%, Era Group ( ERA), down 4.0% and Universal Truckload Services ( UACL), down 4.0% , were all laggards within the transportation industry with United Continental Holdings ( UAL) 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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