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 76 points (0.4%) at 17,077 as of Monday, Aug. 25, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,872 issues advancing vs. 1,174 declining with 144 unchanged.

The Transportation industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.5%. Top gainers within the Transportation industry included Globus Maritime ( GLBS), up 6.5%, Providence & Worcester Railroad ( PWX), up 1.9%, Box Ships ( TEU), up 4.5%, China Eastern Airlines ( CEA), up 4.3% and Covenant Transportation Group ( CVTI), up 1.9%.

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

China Eastern Airlines ( CEA) is one of the companies that pushed the Transportation industry higher today. China Eastern Airlines was up $0.72 (4.3%) to $17.42 on average volume. Throughout the day, 26,902 shares of China Eastern Airlines exchanged hands as compared to its average daily volume of 20,300 shares. The stock ranged in a price between $17.38-$17.45 after having opened the day at $17.43 as compared to the previous trading day's close of $16.70.

China Eastern Airlines has a market cap of $4.3 billion and is part of the services sector. Shares are down 13.2% year-to-date as of the close of trading on Friday.

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, Box Ships ( TEU) was up $0.06 (4.5%) to $1.38 on average volume. Throughout the day, 138,357 shares of Box Ships exchanged hands as compared to its average daily volume of 113,800 shares. The stock ranged in a price between $1.32-$1.40 after having opened the day at $1.34 as compared to the previous trading day's close of $1.32.

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 $35.4 million and is part of the services sector. Shares are down 59.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Box Ships a buy, 2 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.

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'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.
  • Net operating cash flow has significantly decreased to $3.80 million or 62.70% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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

Globus Maritime ( GLBS) was another company that pushed the Transportation industry higher today. Globus Maritime was up $0.22 (6.5%) to $3.62 on heavy volume. Throughout the day, 57,682 shares of Globus Maritime exchanged hands as compared to its average daily volume of 11,600 shares. The stock ranged in a price between $3.28-$4.00 after having opened the day at $3.40 as compared to the previous trading day's close of $3.40.

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 $33.7 million and is part of the services sector. Shares are down 14.1% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Globus Maritime a buy, no analysts rate it a sell, and none rate it a hold.

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 in line with the industry average cash flow growth rate of -19.15%.
  • 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.

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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