3 Transportation Stocks Moving The Industry Upward

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 60 points (0.4%) at 17,039 as of Thursday, Aug. 21, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,834 issues advancing vs. 1,204 declining with 157 unchanged.

The Transportation industry as a whole closed the day up 0.1% versus the S&P 500, which was up 0.3%. Top gainers within the Transportation industry included Sino-Global Shipping America ( SINO), up 2.7%, Danaos ( DAC), up 3.9%, Air T ( AIRT), up 1.9%, Ultrapetrol Bahamas ( ULTR), up 2.8% and Paragon Shipping ( PRGN), up 2.8%.

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 $0.21 (1.9%) to $11.13 on light volume. Throughout the day, 6,660 shares of Air T exchanged hands as compared to its average daily volume of 12,100 shares. The stock ranged in a price between $10.85-$11.22 after having opened the day at $11.22 as compared to the previous trading day's close of $10.92.

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 $26.0 million and is part of the services sector. Shares are down 7.8% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Air T a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Air T as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on AIRT go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
  • AIR T INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, AIR T INC reported lower earnings of $0.60 versus $0.68 in the prior year.
  • 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 Air Freight & Logistics industry. The net income has significantly decreased by 47.5% when compared to the same quarter one year ago, falling from $0.14 million to $0.07 million.

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, Danaos ( DAC) was up $0.22 (3.9%) to $5.87 on light volume. Throughout the day, 11,361 shares of Danaos exchanged hands as compared to its average daily volume of 15,600 shares. The stock ranged in a price between $5.54-$5.89 after having opened the day at $5.65 as compared to the previous trading day's close of $5.65.

Danaos Corporation, together with its subsidiaries, is engaged in the ownership and operation of containerships, as well as chartering of its vessels to liner companies in Greece and internationally. It primarily offers seaborne transportation services. Danaos has a market cap of $619.3 million and is part of the services sector. Shares are up 15.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Danaos a buy, no analysts rate it a sell, and 1 rates 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 Danaos as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk and weak operating cash flow.

Highlights from TheStreet Ratings analysis on DAC 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 14.8% when compared to the same quarter one year ago, dropping from $19.54 million to $16.64 million.
  • The debt-to-equity ratio is very high at 4.64 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Net operating cash flow has decreased to $44.02 million or 11.73% when compared to the same quarter last year. Despite a decrease in cash flow of 11.73%, DANAOS CORP 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. Compared to other companies in the Marine industry and the overall market on the basis of return on equity, DANAOS CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • DAC, with its decline in revenue, underperformed when compared the industry average of 9.8%. Since the same quarter one year prior, revenues slightly dropped by 6.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Danaos 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 $0.04 (2.7%) to $1.69 on light volume. Throughout the day, 6,256 shares of Sino-Global Shipping America exchanged hands as compared to its average daily volume of 19,600 shares. The stock ranged in a price between $1.62-$1.74 after having opened the day at $1.63 as compared to the previous trading day's close of $1.65.

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 $7.9 million and is part of the services sector. Shares are down 34.0% year-to-date as of the close of trading on Wednesday. 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:

  • 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.

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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