3 Stocks Pushing The Transportation Industry Lower

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The Transportation industry as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Laggards within the Transportation industry included Covenant Transportation Group ( CVTI), down 2.2%, StealthGas ( GASS), down 1.8%, Navios Maritime Acquisition ( NNA), down 2.8%, Frontline ( FRO), down 1.9% and Costamare ( CMRE), down 2.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Navios Maritime Acquisition ( NNA) is one of the companies that pushed the Transportation industry lower today. Navios Maritime Acquisition was down $0.09 (2.8%) to $3.10 on light volume. Throughout the day, 210,632 shares of Navios Maritime Acquisition exchanged hands as compared to its average daily volume of 476,700 shares. The stock ranged in price between $3.10-$3.23 after having opened the day at $3.16 as compared to the previous trading day's close of $3.19.

Navios Maritime Acquisition Corporation provides marine transportation services worldwide. The company owns a fleet of crude oil, refined petroleum product, and chemical tankers. Navios Maritime Acquisition has a market cap of $494.4 million and is part of the services sector. Shares are down 25.9% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts who rate Navios Maritime Acquisition a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Navios Maritime Acquisition as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on NNA go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1843.9% when compared to the same quarter one year ago, falling from $0.74 million to -$12.82 million.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, NAVIOS MARITIME ACQUISITION's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 2.53 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, NNA has managed to keep a strong quick ratio of 1.66, which demonstrates the ability to cover short-term cash needs.
  • The share price of NAVIOS MARITIME ACQUISITION has not done very well: it is down 13.98% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • NAVIOS MARITIME ACQUISITION has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, NAVIOS MARITIME ACQUISITION reported poor results of -$0.42 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$0.42).

You can view the full analysis from the report here: Navios Maritime Acquisition Ratings Report

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At the close, StealthGas ( GASS) was down $0.19 (1.8%) to $10.16 on heavy volume. Throughout the day, 177,210 shares of StealthGas exchanged hands as compared to its average daily volume of 101,700 shares. The stock ranged in price between $9.92-$10.20 after having opened the day at $10.13 as compared to the previous trading day's close of $10.35.

StealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users worldwide. It also provides crude oil and product carriers chartered to oil producers, refiners, and commodities traders. StealthGas has a market cap of $418.0 million and is part of the services sector. Shares are up 2.5% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts who rate StealthGas a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates StealthGas as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on GASS go as follows:

  • The revenue growth came in higher than the industry average of 1.5%. Since the same quarter one year prior, revenues rose by 15.1%. 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.
  • 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 Oil, Gas & Consumable Fuels industry average. The net income increased by 18.2% when compared to the same quarter one year prior, going from $6.46 million to $7.63 million.
  • Net operating cash flow has significantly increased by 60.39% to $17.87 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 18.80%.
  • The gross profit margin for STEALTHGAS INC is rather high; currently it is at 58.23%. Regardless of GASS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GASS's net profit margin of 22.52% significantly outperformed against the industry.
  • GASS's debt-to-equity ratio of 0.70 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that GASS's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.90 is high and demonstrates strong liquidity.

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

Covenant Transportation Group ( CVTI) was another company that pushed the Transportation industry lower today. Covenant Transportation Group was down $0.26 (2.2%) to $11.37 on light volume. Throughout the day, 26,313 shares of Covenant Transportation Group exchanged hands as compared to its average daily volume of 39,200 shares. The stock ranged in price between $11.29-$11.80 after having opened the day at $11.60 as compared to the previous trading day's close of $11.63.

Covenant Transportation Group, Inc., together with its subsidiaries, offers truckload transportation and brokerage services in the continental United States. Its Asset-Based Truckload Services segment provides long haul, dedicated, temperature-controlled, and regional solo-driver services. Covenant Transportation Group has a market cap of $146.9 million and is part of the services sector. Shares are up 42.3% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Covenant Transportation Group a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Covenant Transportation Group as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

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Highlights from TheStreet Ratings analysis on CVTI go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 99.9% when compared to the same quarter one year prior, rising from $1.89 million to $3.78 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.4%. 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.
  • Powered by its strong earnings growth of 92.30% and other important driving factors, this stock has surged by 85.49% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • COVENANT TRANSPORTATION GRP 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, COVENANT TRANSPORTATION GRP reported lower earnings of $0.35 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.61 versus $0.35).
  • The gross profit margin for COVENANT TRANSPORTATION GRP is currently extremely low, coming in at 11.72%. Regardless of CVTI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CVTI's net profit margin of 2.17% is significantly lower than the industry average.

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

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