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 32 points (0.2%) at 16,953 as of Friday, June 20, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,583 issues advancing vs. 1,400 declining with 164 unchanged.

The Transportation industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.2%. Top gainers within the Transportation industry included Globus Maritime ( GLBS), up 9.2%, Radiant Logistics ( RLGT), up 1.6%, Patriot Transportation Holdings ( PATR), up 2.3%, Covenant Transportation Group ( CVTI), up 2.3% and P AM Transportation ( PTSI), up 3.8%.

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

Patriot Transportation Holdings ( PATR) is one of the companies that pushed the Transportation industry higher today. Patriot Transportation Holdings was up $0.75 (2.3%) to $33.99 on heavy volume. Throughout the day, 18,741 shares of Patriot Transportation Holdings exchanged hands as compared to its average daily volume of 11,500 shares. The stock ranged in a price between $33.00-$33.99 after having opened the day at $33.45 as compared to the previous trading day's close of $33.24.

Patriot Transportation Holding, Inc., through its subsidiaries, is engaged in the transportation and real estate businesses in the United States. It operates in three segments: Transportation, Mining Royalty Land, and Developed Property Rentals. Patriot Transportation Holdings has a market cap of $319.1 million and is part of the services sector. Shares are down 19.9% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Patriot Transportation Holdings 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 Patriot Transportation Holdings 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 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.

Highlights from TheStreet Ratings analysis on PATR go as follows:

  • PATR's revenue growth has slightly outpaced the industry average of 9.2%. Since the same quarter one year prior, revenues rose by 17.8%. 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.
  • PATR's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Road & Rail industry and the overall market, PATRIOT TRANSN HOLDING INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • PATRIOT TRANSN HOLDING INC's earnings per share declined by 25.0% 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, PATRIOT TRANSN HOLDING INC increased its bottom line by earning $1.60 versus $0.81 in the prior year. For the next year, the market is expecting a contraction of 30.3% in earnings ($1.12 versus $1.60).

You can view the full analysis from the report here: Patriot Transportation 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.

At the close, Radiant Logistics ( RLGT) was up $0.05 (1.6%) to $3.08 on light volume. Throughout the day, 11,087 shares of Radiant Logistics exchanged hands as compared to its average daily volume of 57,200 shares. The stock ranged in a price between $3.04-$3.12 after having opened the day at $3.11 as compared to the previous trading day's close of $3.03.

Radiant Logistics, Inc. operates as a non-asset based transportation and logistic services company in the United States and internationally. Radiant Logistics has a market cap of $104.8 million and is part of the services sector. Shares are up 13.1% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Radiant 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 Radiant Logistics 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, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on RLGT go as follows:

  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 18.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RLGT's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 50.00% and other important driving factors, this stock has surged by 54.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RLGT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Air Freight & Logistics industry. The net income increased by 86.8% when compared to the same quarter one year prior, rising from $0.88 million to $1.65 million.

You can view the full analysis from the report here: Radiant 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.

Globus Maritime ( GLBS) was another company that pushed the Transportation industry higher today. Globus Maritime was up $0.31 (9.2%) to $3.71 on average volume. Throughout the day, 11,124 shares of Globus Maritime exchanged hands as compared to its average daily volume of 11,900 shares. The stock ranged in a price between $3.36-$3.71 after having opened the day at $3.39 as compared to the previous trading day's close of $3.40.

Globus Maritime Limited, an integrated dry bulk shipping company, provides marine transportation services worldwide. It owns, operates, and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes. Globus Maritime has a market cap of $35.8 million and is part of the services sector. Shares are down 11.6% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Globus Maritime a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Globus Maritime as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on GLBS go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Marine industry. The net income has decreased by 18.0% when compared to the same quarter one year ago, dropping from $1.32 million to $1.08 million.
  • Net operating cash flow has decreased to $2.81 million or 16.15% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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, GLOBUS MARITIME LTD's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for GLOBUS MARITIME LTD is rather high; currently it is at 50.14%. Regardless of GLBS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GLBS's net profit margin of 14.60% compares favorably to the industry average.
  • GLOBUS MARITIME LTD's earnings per share declined by 15.4% 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, GLOBUS MARITIME LTD turned its bottom line around by earning $0.52 versus -$8.20 in the prior year. This year, the market expects an improvement in earnings ($0.57 versus $0.52).

You can view the full analysis from the report here: Globus Maritime 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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