3 Stocks Pushing The Transportation Industry Lower

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The Transportation industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.2%. Laggards within the Transportation industry included Patriot Transportation Holdings ( PATR), down 1.7%, Guangshen Railway ( GSH), down 1.6%, International Shipholding ( ISH), down 4.1%, Diana Containerships ( DCIX), down 3.0% and FreeSeas ( FREE), down 6.2%.

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

International Shipholding ( ISH) is one of the companies that pushed the Transportation industry lower today. International Shipholding was down $0.87 (4.1%) to $20.56 on heavy volume. Throughout the day, 43,426 shares of International Shipholding exchanged hands as compared to its average daily volume of 22,600 shares. The stock ranged in price between $20.50-$21.50 after having opened the day at $21.32 as compared to the previous trading day's close of $21.43.

International Shipholding Corporation, through its subsidiaries, provides maritime transportation services to commercial and governmental customers primarily under the medium to long-term time charters or contracts of affreightment in the United States and internationally. International Shipholding has a market cap of $161.4 million and is part of the services sector. Shares are down 27.4% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates International Shipholding a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates International Shipholding as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on ISH go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 2.5%. 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.
  • ISH's debt-to-equity ratio of 0.61 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.86 is weak.
  • 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, INTL SHIPHOLDING CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • INTL SHIPHOLDING CORP 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, INTL SHIPHOLDING CORP reported lower earnings of $2.03 versus $3.06 in the prior year. For the next year, the market is expecting a contraction of 66.5% in earnings ($0.68 versus $2.03).
  • 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 135.7% when compared to the same quarter one year ago, falling from $1.86 million to -$0.66 million.

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

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At the close, Guangshen Railway ( GSH) was down $0.32 (1.6%) to $20.25 on average volume. Throughout the day, 23,266 shares of Guangshen Railway exchanged hands as compared to its average daily volume of 21,900 shares. The stock ranged in price between $20.12-$20.29 after having opened the day at $20.22 as compared to the previous trading day's close of $20.57.

Guangshen Railway has a market cap of $2.9 billion and is part of the services sector. Shares are down 10.9% year-to-date as of the close of trading on Wednesday.

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Patriot Transportation Holdings ( PATR) was another company that pushed the Transportation industry lower today. Patriot Transportation Holdings was down $0.61 (1.7%) to $35.39 on light volume. Throughout the day, 4,840 shares of Patriot Transportation Holdings exchanged hands as compared to its average daily volume of 10,100 shares. The stock ranged in price between $35.01-$36.16 after having opened the day at $35.81 as compared to the previous trading day's close of $36.00.

Patriot Transportation Holding, Inc., through its subsidiaries, is engaged in the transportation and real estate businesses in the United States. It operates in three segments: Transportation, Mining Royalty Land, and Developed Property Rentals. Patriot Transportation Holdings has a market cap of $347.7 million and is part of the services sector. Shares are down 13.3% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Patriot Transportation Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from TheStreet Ratings analysis on PATR go as follows:

  • PATR's revenue growth has slightly outpaced the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 15.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PATR's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that PATR's debt-to-equity ratio is low, the quick ratio, which is currently 0.52, displays a potential problem in covering short-term cash needs.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Road & Rail industry average. The net income increased by 16.1% when compared to the same quarter one year prior, going from $3.00 million to $3.49 million.
  • PATRIOT TRANSN HOLDING INC has improved earnings per share by 16.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, PATRIOT TRANSN HOLDING INC increased its bottom line by earning $1.60 versus $0.81 in the prior year. For the next year, the market is expecting a contraction of 28.1% in earnings ($1.15 versus $1.60).

You can view the full analysis from the report here: Patriot Transportation Holdings Ratings Report

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