3 Transportation Stocks Driving 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30.89 points (-0.2%) at 17,068 as of Tuesday, Sept. 2, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,485 issues advancing vs. 1,589 declining with 141 unchanged.

The Transportation industry as a whole closed the day up 0.8% versus the S&P 500, which was down 0.1%. Top gainers within the Transportation industry included Globus Maritime ( GLBS), up 1.8%, PHI ( PHII), up 27.6%, Euroseas ( ESEA), up 1.8%, China Eastern Airlines ( CEA), up 5.8% and Patriot Transportation Holdings ( PATR), up 3.8%.

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

Euroseas ( ESEA) is one of the companies that pushed the Transportation industry higher today. Euroseas was up $0.02 (1.8%) to $1.16 on light volume. Throughout the day, 21,383 shares of Euroseas exchanged hands as compared to its average daily volume of 52,600 shares. The stock ranged in a price between $1.14-$1.18 after having opened the day at $1.14 as compared to the previous trading day's close of $1.14.

Euroseas Ltd. provides ocean-going transportation services worldwide. It owns and operates dry bulk carriers that transport bulks, such as iron ore, coal, and grains, as well as bauxite, phosphate, and fertilizers. Euroseas has a market cap of $64.9 million and is part of the services sector. Shares are down 21.4% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Euroseas a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Euroseas as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ESEA go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Marine industry and the overall market, EUROSEAS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for EUROSEAS LTD is rather low; currently it is at 15.92%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -49.46% is significantly below that of the industry average.
  • ESEA has underperformed the S&P 500 Index, declining 8.80% from its price level of one year ago. 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.
  • EUROSEAS LTD reported significant earnings per share improvement 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, EUROSEAS LTD reported poor results of -$2.27 versus -$0.39 in the prior year. This year, the market expects an improvement in earnings (-$0.26 versus -$2.27).
  • Despite currently having a low debt-to-equity ratio of 0.42, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ESEA's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.72 is high and demonstrates strong liquidity.

You can view the full analysis from the report here: Euroseas 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, PHI ( PHII) was up $11.46 (27.6%) to $52.98 on light volume. Throughout the day, 175 shares of PHI exchanged hands as compared to its average daily volume of 1,000 shares. The stock ranged in a price between $52.98-$52.98 after having opened the day at $52.98 as compared to the previous trading day's close of $41.52.

PHI, Inc. provides helicopter transportation services to the oil and gas exploration, development, and production industry, principally in the Gulf of Mexico. The company operates in three business segments: Oil and Gas, Air Medical, and Technical Services. PHI has a market cap of $116.2 million and is part of the services sector. Shares are up 4.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate PHI 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.

TheStreet Ratings rates PHI as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on PHII go as follows:

  • PHII's revenue growth trails the industry average of 20.4%. Since the same quarter one year prior, revenues slightly increased by 8.5%. 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.
  • Net operating cash flow has increased to $39.17 million or 41.91% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 27.28%.
  • PHII's debt-to-equity ratio of 0.88 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. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.14 is very high and demonstrates very strong liquidity.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.

You can view the full analysis from the report here: PHI 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 $0.06 (1.8%) to $3.36 on light volume. Throughout the day, 9,100 shares of Globus Maritime exchanged hands as compared to its average daily volume of 12,500 shares. The stock ranged in a price between $3.15-$3.37 after having opened the day at $3.20 as compared to the previous trading day's close of $3.30.

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 $33.8 million and is part of the services sector. Shares are down 16.7% 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 -19.22%.
  • 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.
  • GLBS's share price has surged by 26.08% over the past year, reflecting the market's general trend, despite their weak earnings growth during the last quarter. Regarding the future course of this stock, we feel that the risks involved in investing in GLBS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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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