3 Stocks Boosting The Transportation 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 19 points (0.1%) at 17,098 as of Friday, Aug. 29, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,137 issues advancing vs. 890 declining with 157 unchanged.

The Transportation industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.3%. Top gainers within the Transportation industry included Sino-Global Shipping America ( SINO), up 3.1%, Box Ships ( TEU), up 2.2%, Global Ship Lease ( GSL), up 3.4%, Diana Containerships ( DCIX), up 2.3% and Ardmore Shipping ( ASC), up 1.9%.

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

Global Ship Lease ( GSL) is one of the companies that pushed the Transportation industry higher today. Global Ship Lease was up $0.13 (3.4%) to $3.98 on light volume. Throughout the day, 29,265 shares of Global Ship Lease exchanged hands as compared to its average daily volume of 40,900 shares. The stock ranged in a price between $3.85-$4.00 after having opened the day at $3.88 as compared to the previous trading day's close of $3.85.

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 $177.8 million and is part of the services sector. Shares are down 35.9% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Global Ship Lease a buy, no analysts rate it a sell, and none rate it a hold.

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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 16.34% 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 in line with the industry average cash flow growth rate of -19.15%.

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.

At the close, Box Ships ( TEU) was up $0.03 (2.2%) to $1.39 on light volume. Throughout the day, 42,866 shares of Box Ships exchanged hands as compared to its average daily volume of 115,400 shares. The stock ranged in a price between $1.33-$1.39 after having opened the day at $1.36 as compared to the previous trading day's close of $1.36.

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 $34.4 million and is part of the services sector. Shares are down 58.7% 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.

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.

Sino-Global Shipping America ( SINO) was another company that pushed the Transportation industry higher today. Sino-Global Shipping America was up $0.05 (3.1%) to $1.68 on heavy volume. Throughout the day, 29,212 shares of Sino-Global Shipping America exchanged hands as compared to its average daily volume of 18,700 shares. The stock ranged in a price between $1.62-$1.73 after having opened the day at $1.63 as compared to the previous trading day's close of $1.63.

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 $7.7 million and is part of the services sector. Shares are down 34.8% year-to-date as of the close of trading on Thursday. 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 11.75% 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 53.82%.
  • 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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