3 Stocks Pushing The Transportation Industry Lower

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The Transportation industry as a whole closed the day down 0.3% versus the S&P 500, which was up 0.2%. Laggards within the Transportation industry included Sino-Global Shipping America ( SINO), down 2.4%, Globus Maritime ( GLBS), down 3.5%, Euroseas ( ESEA), down 2.6%, Radiant Logistics ( RLGT), down 1.6% and Box Ships ( TEU), down 2.6%.

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

Euroseas ( ESEA) is one of the companies that pushed the Transportation industry lower today. Euroseas was down $0.03 (2.6%) to $1.14 on light volume. Throughout the day, 7,513 shares of Euroseas exchanged hands as compared to its average daily volume of 53,100 shares. The stock ranged in price between $1.13-$1.17 after having opened the day at $1.13 as compared to the previous trading day's close of $1.17.

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 $65.4 million and is part of the services sector. Shares are down 20.7% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Euroseas a buy, no analysts rate it a sell, and 1 rates it a hold.

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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 poor profit margins.

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.
  • The gross profit margin for EUROSEAS LTD is rather low; currently it is at 15.92%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -49.46% is significantly below that of the industry average.
  • In its most recent trading session, ESEA 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. 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 (-$0.26 versus -$2.27).
  • Despite currently having a low debt-to-equity ratio of 0.42, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ESEA's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.72 is high and demonstrates strong liquidity.

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

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At the close, Globus Maritime ( GLBS) was down $0.12 (3.5%) to $3.34 on light volume. Throughout the day, 2,047 shares of Globus Maritime exchanged hands as compared to its average daily volume of 12,000 shares. The stock ranged in price between $3.33-$3.49 after having opened the day at $3.45 as compared to the previous trading day's close of $3.46.

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 $35.2 million and is part of the services sector. Shares are down 13.1% 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 -92.03%.
  • 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

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Sino-Global Shipping America ( SINO) was another company that pushed the Transportation industry lower today. Sino-Global Shipping America was down $0.04 (2.4%) to $1.65 on heavy volume. Throughout the day, 47,527 shares of Sino-Global Shipping America exchanged hands as compared to its average daily volume of 18,300 shares. The stock ranged in price between $1.61-$1.81 after having opened the day at $1.71 as compared to the previous trading day's close of $1.69.

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 $7.4 million and is part of the services sector. Shares are down 32.4% 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.

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Highlights from TheStreet Ratings analysis on SINO go as follows:

  • SINO has underperformed the S&P 500 Index, declining 15.82% from its price level of one year ago. 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 13.6%. 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 53.78%.
  • 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.

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