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 89 points (0.5%) at 16,650 as of Wednesday, Aug. 13, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,238 issues advancing vs. 759 declining with 137 unchanged.

The Transportation industry as a whole closed the day up 1.1% versus the S&P 500, which was up 0.6%. Top gainers within the Transportation industry included Sino-Global Shipping America ( SINO), up 4.4%, Globus Maritime ( GLBS), up 8.2%, Global Ship Lease ( GSL), up 4.6%, Box Ships ( TEU), up 2.3% and China Eastern Airlines ( CEA), up 2.7%.

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

Global Ship Lease ( GSL) is one of the companies that pushed the Transportation industry higher today. Global Ship Lease was up $0.17 (4.6%) to $3.88 on heavy volume. Throughout the day, 102,355 shares of Global Ship Lease exchanged hands as compared to its average daily volume of 40,200 shares. The stock ranged in a price between $3.71-$3.94 after having opened the day at $3.72 as compared to the previous trading day's close of $3.71.

Global Ship Lease, Inc. owns and leases containerships under long-term fixed-rate charters to container shipping companies. As of March 31, 2014, it owned 17 vessels with a total capacity of 66,349 twenty-foot equivalent units. The company is based in London, the United Kingdom. Global Ship Lease has a market cap of $180.2 million and is part of the services sector. Shares are down 38.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Global Ship Lease a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Global Ship Lease as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, feeble growth in its earnings per share, generally disappointing historical performance in the stock itself and weak operating cash flow.

Highlights from TheStreet Ratings analysis on GSL 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 Marine industry. The net income has significantly decreased by 122.6% when compared to the same quarter one year ago, falling from $10.13 million to -$2.29 million.
  • 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 on the basis of return on equity, GLOBAL SHIP LEASE INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • GLOBAL SHIP LEASE INC 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. Stable earnings per share over the past year indicate the company has managed its earnings and share float. We anticipate this stability to falter in the coming year and, in turn, the company to deliver lower earnings per share than prior full year. During the past fiscal year, GLOBAL SHIP LEASE INC's EPS of $0.68 remained unchanged from the prior years' EPS of $0.68. For the next year, the market is expecting a contraction of 104.4% in earnings (-$0.03 versus $0.68).
  • The share price of GLOBAL SHIP LEASE INC has not done very well: it is down 19.36% 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.
  • Net operating cash flow has decreased to $17.46 million or 10.66% when compared to the same quarter last year. Despite a decrease in cash flow of 10.66%, GLOBAL SHIP LEASE INC is still significantly exceeding the industry average of -91.98%.

You can view the full analysis from the report here: Global Ship Lease Ratings Report

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At the close, Globus Maritime ( GLBS) was up $0.25 (8.2%) to $3.30 on heavy volume. Throughout the day, 21,334 shares of Globus Maritime exchanged hands as compared to its average daily volume of 11,600 shares. The stock ranged in a price between $3.14-$3.30 after having opened the day at $3.15 as compared to the previous trading day's close of $3.05.

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 $33.8 million and is part of the services sector. Shares are down 16.7% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Globus Maritime a buy, no analysts rate it a sell, and none rate it a hold.

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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 underperformed when compared to that of the S&P 500 and the Marine industry average. 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. Despite a decrease in cash flow of 16.15%, GLOBUS MARITIME LTD is still significantly exceeding the industry average of -91.98%.
  • 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.

Sino-Global Shipping America ( SINO) was another company that pushed the Transportation industry higher today. Sino-Global Shipping America was up $0.07 (4.4%) to $1.65 on light volume. Throughout the day, 2,031 shares of Sino-Global Shipping America exchanged hands as compared to its average daily volume of 17,500 shares. The stock ranged in a price between $1.58-$1.65 after having opened the day at $1.60 as compared to the previous trading day's close of $1.58.

Sino-Global Shipping America, Ltd. provides shipping agency services for ships coming to and departing from Chinese ports. Sino-Global Shipping America has a market cap of $7.8 million and is part of the services sector. Shares are down 36.8% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Sino-Global Shipping America a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Sino-Global Shipping America as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on SINO go as follows:

  • In its most recent trading session, SINO has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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. Compared to other companies in the Transportation Infrastructure industry and the overall market, SINO-GLOBAL SHIPPING AMERICA's return on equity significantly trails that of both the industry average and the S&P 500.
  • SINO, with its decline in revenue, underperformed when compared the industry average of 15.3%. Since the same quarter one year prior, revenues fell by 10.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has increased to -$0.29 million or 48.18% when compared to the same quarter last year. Despite an increase in cash flow, SINO-GLOBAL SHIPPING AMERICA's average is still marginally south of the industry average growth rate of 52.00%.
  • The gross profit margin for SINO-GLOBAL SHIPPING AMERICA is rather high; currently it is at 56.07%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.58% trails the industry average.

You can view the full analysis from the report here: Sino-Global Shipping America 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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