3 Transportation Stocks Nudging 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 110 points (0.6%) at 17,054 as of Monday, July 14, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,026 issues advancing vs. 1,002 declining with 139 unchanged.

The Transportation industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.5%. Top gainers within the Transportation industry included Radiant Logistics ( RLGT), up 3.0%, China Metro-Rural Holdings ( CNR), up 13.6%, Air T ( AIRT), up 1.6%, Euroseas ( ESEA), up 1.8% and Rand Logistics ( RLOG), up 3.9%.

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

Air T ( AIRT) is one of the companies that pushed the Transportation industry higher today. Air T was up $0.19 (1.6%) to $12.36 on average volume. Throughout the day, 3,961 shares of Air T exchanged hands as compared to its average daily volume of 5,100 shares. The stock ranged in a price between $12.35-$12.89 after having opened the day at $12.45 as compared to the previous trading day's close of $12.17.

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 $28.8 million and is part of the services sector. Shares are up 2.3% 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 increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on AIRT go as follows:

  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
  • 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 1.98, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Air Freight & Logistics industry average. The net income increased by 6.1% when compared to the same quarter one year prior, going from $0.39 million to $0.42 million.
  • AIRT, with its decline in revenue, underperformed when compared the industry average of 3.6%. Since the same quarter one year prior, revenues fell by 17.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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.

At the close, China Metro-Rural Holdings ( CNR) was up $0.12 (13.6%) to $1.00 on heavy volume. Throughout the day, 187,870 shares of China Metro-Rural Holdings exchanged hands as compared to its average daily volume of 8,800 shares. The stock ranged in a price between $0.88-$1.10 after having opened the day at $0.89 as compared to the previous trading day's close of $0.88.

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.

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

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.

Radiant Logistics ( RLGT) was another company that pushed the Transportation industry higher today. Radiant Logistics was up $0.09 (3.0%) to $3.08 on heavy volume. Throughout the day, 55,439 shares of Radiant Logistics exchanged hands as compared to its average daily volume of 1,600 shares. The stock ranged in a price between $3.01-$3.09 after having opened the day at $3.04 as compared to the previous trading day's close of $2.99.

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 $102.4 million and is part of the services sector. Shares are up 11.6% 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.

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 60.42% 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.

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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