3 Stocks Driving The Transportation 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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 14.32 points (-0.1%) at 16,933 as of Monday, June 23, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,387 issues advancing vs. 1,632 declining with 133 unchanged.

The Transportation industry as a whole closed the day down 0.2% versus the S&P 500, which was down 0.1%. Top gainers within the Transportation industry included Euroseas ( ESEA), up 1.7%, Rand Logistics ( RLOG), up 1.8%, Radiant Logistics ( RLGT), up 2.6%, FreeSeas ( FREE), up 1.9% and KNOT Offshore Partners ( KNOP), up 3.0%.

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

Radiant Logistics ( RLGT) is one of the companies that pushed the Transportation industry higher today. Radiant Logistics was up $0.08 (2.6%) to $3.12 on light volume. Throughout the day, 3,388 shares of Radiant Logistics exchanged hands as compared to its average daily volume of 57,400 shares. The stock ranged in a price between $3.06-$3.14 after having opened the day at $3.13 as compared to the previous trading day's close of $3.04.

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 $103.4 million and is part of the services sector. Shares are up 13.4% year-to-date as of the close of trading on Friday. 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, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. 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 3.6%. 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.
  • 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.
  • Powered by its strong earnings growth of 50.00% and other important driving factors, this stock has surged by 56.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
  • RADIANT LOGISTICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, RADIANT LOGISTICS INC increased its bottom line by earning $0.10 versus $0.06 in the prior year. For the next year, the market is expecting a contraction of 10.0% in earnings ($0.09 versus $0.10).

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.

At the close, Rand Logistics ( RLOG) was up $0.11 (1.8%) to $6.11 on average volume. Throughout the day, 13,860 shares of Rand Logistics exchanged hands as compared to its average daily volume of 16,100 shares. The stock ranged in a price between $5.96-$6.21 after having opened the day at $6.03 as compared to the previous trading day's close of $6.00.

Rand Logistics, Inc., through its subsidiaries, provides bulk freight shipping services in the Great Lakes region. The company offers domestic port-to-port services. Rand Logistics has a market cap of $108.0 million and is part of the services sector. Shares are up 4.0% 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.
  • The stock price has risen over the past year, but it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • 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 (-$0.13 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.

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.

Euroseas ( ESEA) was another company that pushed the Transportation industry higher today. Euroseas was up $0.02 (1.7%) to $1.18 on average volume. Throughout the day, 72,329 shares of Euroseas exchanged hands as compared to its average daily volume of 64,000 shares. The stock ranged in a price between $1.15-$1.19 after having opened the day at $1.15 as compared to the previous trading day's close of $1.16.

Euroseas Ltd. provides ocean-going transportation services worldwide. It owns and operates dry bulk carriers that transport bulks, such as iron ore, coal, and grains, as well as bauxite, phosphate, and fertilizers. Euroseas has a market cap of $66.0 million and is part of the services sector. Shares are down 20.0% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Euroseas a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Euroseas as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on ESEA go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Marine industry and the overall market, EUROSEAS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.24 million or 114.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • ESEA, with its decline in revenue, underperformed when compared the industry average of 1.6%. Since the same quarter one year prior, revenues fell by 12.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 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. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • EUROSEAS LTD reported significant earnings per share improvement 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, EUROSEAS LTD reported poor results of -$2.27 versus -$0.39 in the prior year. This year, the market expects an improvement in earnings (-$0.17 versus -$2.27).

You can view the full analysis from the report here: Euroseas 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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