3 Stocks Pushing The Transportation Industry Lower

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The Transportation industry as a whole was unchanged today versus the S&P 500, which was down 0.2%. Laggards within the Transportation industry included China Metro-Rural Holdings ( CNR), down 1.8%, Global Ship Lease ( GSL), down 1.6%, Box Ships ( TEU), down 5.7%, Guangshen Railway ( GSH), down 3.6% and Paragon Shipping ( PRGN), down 4.6%.

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

Box Ships ( TEU) is one of the companies that pushed the Transportation industry lower today. Box Ships was down $0.08 (5.7%) to $1.32 on average volume. Throughout the day, 131,083 shares of Box Ships exchanged hands as compared to its average daily volume of 114,700 shares. The stock ranged in price between $1.32-$1.40 after having opened the day at $1.40 as compared to the previous trading day's close of $1.40.

Box Ships Inc., a shipping company, is engaged in the seaborne transportation of containers worldwide. As of December 31, 2013, it had a fleet of 9 containerships with a total capacity of approximately 43,925 twenty-foot equivalent units. Box Ships has a market cap of $37.2 million and is part of the services sector. Shares are down 57.5% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Box Ships a buy, 2 analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Box Ships as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on TEU go as follows:

  • 47.38% is the gross profit margin for BOX SHIPS INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, TEU's net profit margin of -10.70% significantly underperformed when compared to the industry average.
  • 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 137.8% when compared to the same quarter one year ago, falling from $4.02 million to -$1.52 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, BOX SHIPS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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

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At the close, Global Ship Lease ( GSL) was down $0.06 (1.6%) to $3.73 on average volume. Throughout the day, 38,606 shares of Global Ship Lease exchanged hands as compared to its average daily volume of 41,400 shares. The stock ranged in price between $3.73-$3.79 after having opened the day at $3.79 as compared to the previous trading day's close of $3.79.

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 $178.3 million and is part of the services sector. Shares are down 36.9% year-to-date as of the close of trading on Thursday.

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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 14.10% 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 -92.03%.

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

China Metro-Rural Holdings ( CNR) was another company that pushed the Transportation industry lower today. China Metro-Rural Holdings was down $0.02 (1.8%) to $0.93 on light volume. Throughout the day, 950 shares of China Metro-Rural Holdings exchanged hands as compared to its average daily volume of 20,500 shares. The stock ranged in price between $0.91-$0.93 after having opened the day at $0.92 as compared to the previous trading day's close of $0.95.

China Metro-Rural Holdings has a market cap of $69.9 million and is part of the services sector. Shares are up 5.6% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates China Metro-Rural Holdings 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.

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3 Stocks Pushing The Transportation Industry Lower

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