3 Stocks Improving Performance Of The Transportation Industry

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 40 points (0.2%) at 16,487 as of Friday, May 16, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,578 issues advancing vs. 1,383 declining with 164 unchanged.

The Transportation industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.3%. Top gainers within the Transportation industry included Danaos ( DAC), up 2.3%, International Shipholding ( ISH), up 4.0%, Grupo Aeroportuario del Centro Norte SAB de ( OMAB), up 1.7%, Universal Truckload Services ( UACL), up 2.4% and Paragon Shipping ( PRGN), up 2.8%.

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

Grupo Aeroportuario del Centro Norte SAB de ( OMAB) is one of the companies that pushed the Transportation industry higher today. Grupo Aeroportuario del Centro Norte SAB de was up $0.51 (1.7%) to $31.26 on light volume. Throughout the day, 19,496 shares of Grupo Aeroportuario del Centro Norte SAB de exchanged hands as compared to its average daily volume of 33,900 shares. The stock ranged in a price between $30.65-$31.88 after having opened the day at $30.65 as compared to the previous trading day's close of $30.75.

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., through its subsidiaries, develops, operates, and maintains airports in Mexico. It also operates NH T2 Hotel inside Terminal 2 of the Mexico City International Airport. Grupo Aeroportuario del Centro Norte SAB de has a market cap of $1.6 billion and is part of the services sector. Shares are up 15.2% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Grupo Aeroportuario del Centro Norte SAB de a buy, no analysts rate it a sell, and 3 rate it a hold.

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

TheStreet Ratings rates Grupo Aeroportuario del Centro Norte SAB de as a buy.

Highlights from TheStreet Ratings analysis on OMAB go as follows:

  • OMAB, with its decline in revenue, underperformed when compared the industry average of 9.3%. Since the same quarter one year prior, revenues slightly dropped by 5.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • GRUPO AEROPORTUARIO DEL CENT's earnings per share declined by 5.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GRUPO AEROPORTUARIO DEL CENT increased its bottom line by earning $1.84 versus $1.25 in the prior year. For the next year, the market is expecting a contraction of 16.3% in earnings ($1.54 versus $1.84).
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, OMAB has underperformed the S&P 500 Index, declining 5.29% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Transportation Infrastructure industry. The net income has decreased by 5.5% when compared to the same quarter one year ago, dropping from $18.33 million to $17.31 million.

You can view the full analysis from the report here: Grupo Aeroportuario del Centro Norte SAB de Ratings Report

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

At the close, International Shipholding ( ISH) was up $0.87 (4.0%) to $22.59 on average volume. Throughout the day, 25,195 shares of International Shipholding exchanged hands as compared to its average daily volume of 25,400 shares. The stock ranged in a price between $21.53-$22.63 after having opened the day at $21.66 as compared to the previous trading day's close of $21.72.

International Shipholding Corporation, through its subsidiaries, provides maritime transportation services to commercial and governmental customers primarily under the medium to long-term time charters or contracts of affreightment in the United States and internationally. International Shipholding has a market cap of $167.0 million and is part of the services sector. Shares are down 26.4% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates International Shipholding a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates International Shipholding as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on ISH go as follows:

  • ISH, with its decline in revenue, underperformed when compared the industry average of 2.9%. Since the same quarter one year prior, revenues fell by 10.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.59, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.77 is weak.
  • Compared to its closing price of one year ago, ISH's share price has jumped by 32.65%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Marine industry and the overall market on the basis of return on equity, INTL SHIPHOLDING CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for INTL SHIPHOLDING CORP is currently extremely low, coming in at 13.84%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.42% is significantly below that of the industry average.

You can view the full analysis from the report here: International Shipholding Ratings Report

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

Danaos ( DAC) was another company that pushed the Transportation industry higher today. Danaos was up $0.14 (2.3%) to $6.19 on light volume. Throughout the day, 9,002 shares of Danaos exchanged hands as compared to its average daily volume of 28,400 shares. The stock ranged in a price between $5.89-$6.19 after having opened the day at $6.12 as compared to the previous trading day's close of $6.05.

Danaos Corporation, together with its subsidiaries, is engaged in the ownership and operation of containerships, as well as chartering of its vessels to liner companies in Greece and internationally. It primarily offers seaborne transportation services. Danaos has a market cap of $652.5 million and is part of the services sector. Shares are up 23.5% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Danaos a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Danaos as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk and weak operating cash flow.

Highlights from TheStreet Ratings analysis on DAC go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Marine industry. The net income has significantly decreased by 37.4% when compared to the same quarter one year ago, falling from $13.43 million to $8.41 million.
  • The debt-to-equity ratio is very high at 5.02 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.23, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has decreased to $39.30 million or 19.26% when compared to the same quarter last year. Despite a decrease in cash flow of 19.26%, DANAOS CORP is still significantly exceeding the industry average of -90.01%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Marine industry and the overall market, DANAOS CORP's return on equity is below that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, DAC's share price has jumped by 39.55%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.

You can view the full analysis from the report here: Danaos Ratings Report

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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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