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.

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 17 points (0.1%) at 16,447 as of Wednesday, Aug. 6, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,883 issues advancing vs. 1,122 declining with 133 unchanged.

The Transportation industry as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Top gainers within the Transportation industry included Air T ( AIRT), up 4.1%, FreeSeas ( FREE), up 1.5%, Ultrapetrol Bahamas ( ULTR), up 3.4%, Guangshen Railway ( GSH), up 4.4% and Eagle Bulk Shipping ( EGLE), up 7.9%.

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

Ultrapetrol Bahamas ( ULTR) is one of the companies that pushed the Transportation industry higher today. Ultrapetrol Bahamas was up $0.11 (3.4%) to $3.36 on light volume. Throughout the day, 33,364 shares of Ultrapetrol Bahamas exchanged hands as compared to its average daily volume of 126,600 shares. The stock ranged in a price between $3.22-$3.39 after having opened the day at $3.24 as compared to the previous trading day's close of $3.25.

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services in South America, Central America, Europe, North America, and Asia. The company operates in three segments: River Business, Offshore Supply Business, and Ocean Business. Ultrapetrol Bahamas has a market cap of $460.6 million and is part of the services sector. Shares are down 12.3% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Ultrapetrol Bahamas 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 Ultrapetrol Bahamas as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk.

Highlights from TheStreet Ratings analysis on ULTR go as follows:

  • ULTR's revenue growth has slightly outpaced the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 10.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ULTRAPETROL BAHAMAS LTD has improved earnings per share by 25.0% 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ULTRAPETROL BAHAMAS LTD turned its bottom line around by earning $0.05 versus -$1.69 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus $0.05).
  • The debt-to-equity ratio of 1.23 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, ULTR has managed to keep a strong quick ratio of 1.77, which demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ULTRAPETROL BAHAMAS LTD is currently lower than what is desirable, coming in at 28.52%. Regardless of ULTR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ULTR's net profit margin of -5.50% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Ultrapetrol Bahamas 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, FreeSeas ( FREE) was up $0.01 (1.5%) to $0.48 on light volume. Throughout the day, 106,999 shares of FreeSeas exchanged hands as compared to its average daily volume of 844,700 shares. The stock ranged in a price between $0.47-$0.48 after having opened the day at $0.48 as compared to the previous trading day's close of $0.47.

FreeSeas has a market cap of $12.1 million and is part of the services sector. Shares are down 80.2% year-to-date as of the close of trading on Tuesday.

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 FREE go as follows:

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

Air T ( AIRT) was another company that pushed the Transportation industry higher today. Air T was up $0.46 (4.1%) to $11.77 on heavy volume. Throughout the day, 19,959 shares of Air T exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in a price between $11.30-$11.77 after having opened the day at $11.35 as compared to the previous trading day's close of $11.31.

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 $27.5 million and is part of the services sector. Shares are down 5.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Air T a buy, no analysts rate it a sell, and none rate it a hold.

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, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels 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.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to 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 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.
  • AIRT, with its decline in revenue, underperformed when compared the industry average of 4.8%. 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.

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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