3 Transportation Stocks Pushing The Industry Higher

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.

Two out of the three major indices traded up today One out of the three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 6 points (0.0%) at 16,782 as of Monday, June 16, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,582 issues advancing vs. 1,410 declining with 164 unchanged.

The Transportation industry as a whole was unchanged today versus the S&P 500, which was unchanged. Top gainers within the Transportation industry included China Metro-Rural Holdings ( CNR), up 3.4%, Air T ( AIRT), up 2.8%, Providence & Worcester Railroad ( PWX), up 1.6%, Rand Logistics ( RLOG), up 1.9% and Radiant Logistics ( RLGT), up 1.6%.

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

Rand Logistics ( RLOG) is one of the companies that pushed the Transportation industry higher today. Rand Logistics was up $0.11 (1.9%) to $6.02 on heavy volume. Throughout the day, 42,176 shares of Rand Logistics exchanged hands as compared to its average daily volume of 16,000 shares. The stock ranged in a price between $5.86-$6.11 after having opened the day at $5.91 as compared to the previous trading day's close of $5.91.

Rand Logistics, Inc., through its subsidiaries, provides bulk freight shipping services in the Great Lakes. The company offers domestic port-to-port and River Class bulk freight shipping services. Rand Logistics has a market cap of $110.3 million and is part of the services sector. Shares are up 2.4% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Rand Logistics 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 Rand Logistics as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity.

Highlights from TheStreet Ratings analysis on RLOG go as follows:

  • The debt-to-equity ratio is very high at 2.92 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 0.26, which clearly demonstrates the inability to cover short-term cash needs.
  • 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, RAND LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RAND LOGISTICS INC has improved earnings per share by 24.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RAND LOGISTICS INC reported poor results of -$0.44 versus -$0.39 in the prior year. This year, the market expects an improvement in earnings (-$0.20 versus -$0.44).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Marine industry average, but is less than that of the S&P 500. The net income increased by 24.4% when compared to the same quarter one year prior, going from -$13.21 million to -$9.98 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 0.7%. Growth in the company's revenue appears to have helped boost the earnings per share.

You can view the full analysis from the report here: Rand Logistics 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, Air T ( AIRT) was up $0.34 (2.8%) to $12.69 on heavy volume. Throughout the day, 5,141 shares of Air T exchanged hands as compared to its average daily volume of 3,100 shares. The stock ranged in a price between $12.40-$12.69 after having opened the day at $12.40 as compared to the previous trading day's close of $12.35.

Air T, Inc., through its subsidiaries, provides overnight air cargo, ground equipment sales, and ground support services in the United States and internationally. Air T has a market cap of $29.0 million and is part of the services sector. Shares are up 3.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Air T 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 Air T 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 solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on AIRT go as follows:

  • AIRT's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 11.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • AIRT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, AIRT has a quick ratio of 1.87, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $5.34 million or 38.78% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.04%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

You can view the full analysis from the report here: Air T 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.

China Metro-Rural Holdings ( CNR) was another company that pushed the Transportation industry higher today. China Metro-Rural Holdings was up $0.03 (3.4%) to $0.92 on average volume. Throughout the day, 8,530 shares of China Metro-Rural Holdings exchanged hands as compared to its average daily volume of 11,000 shares. The stock ranged in a price between $0.91-$0.95 after having opened the day at $0.91 as compared to the previous trading day's close of $0.89.

China Metro-Rural Holdings has a market cap of $65.5 million and is part of the services sector. Shares are down 1.1% year-to-date as of the close of trading on Friday.

Highlights from TheStreet Ratings analysis on CNR go as follows:

You can view the full analysis from the report here: China Metro-Rural Holdings 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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