3 Transportation Stocks Pushing Industry Growth

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 up 11 points (0.1%) at 17,078 as of Wednesday, Sept. 3, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,398 issues advancing vs. 1,669 declining with 141 unchanged.

The Transportation industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.1%. Top gainers within the Transportation industry included Rand Logistics ( RLOG), up 2.4%, Radiant Logistics ( RLGT), up 2.2%, Box Ships ( TEU), up 7.3%, Guangshen Railway ( GSH), up 2.9% and Paragon Shipping ( PRGN), up 2.9%.

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

Box Ships ( TEU) is one of the companies that pushed the Transportation industry higher today. Box Ships was up $0.10 (7.3%) to $1.46 on heavy volume. Throughout the day, 1,385,317 shares of Box Ships exchanged hands as compared to its average daily volume of 113,600 shares. The stock ranged in a price between $1.38-$1.75 after having opened the day at $1.39 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 $35.2 million and is part of the services sector. Shares are down 58.7% year-to-date as of the close of trading on Tuesday. 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'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.

At the close, Radiant Logistics ( RLGT) was up $0.07 (2.2%) to $3.19 on heavy volume. Throughout the day, 70,141 shares of Radiant Logistics exchanged hands as compared to its average daily volume of 35,900 shares. The stock ranged in a price between $3.14-$3.19 after having opened the day at $3.19 as compared to the previous trading day's close of $3.12.

Radiant Logistics, Inc. operates as a non-asset based transportation and logistic services company in the United States and internationally. Radiant Logistics has a market cap of $105.8 million and is part of the services sector. Shares are up 16.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Radiant Logistics 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 Radiant Logistics as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on RLGT go as follows:

  • The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 18.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RLGT's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 50.00% and other important driving factors, this stock has surged by 70.32% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RLGT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Air Freight & Logistics industry. The net income increased by 86.8% when compared to the same quarter one year prior, rising from $0.88 million to $1.65 million.
  • RADIANT LOGISTICS INC reported significant earnings per share improvement 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, RADIANT LOGISTICS INC increased its bottom line by earning $0.10 versus $0.06 in the prior year. For the next year, the market is expecting a contraction of 10.0% in earnings ($0.09 versus $0.10).

You can view the full analysis from the report here: Radiant Logistics 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.

Rand Logistics ( RLOG) was another company that pushed the Transportation industry higher today. Rand Logistics was up $0.15 (2.4%) to $6.44 on average volume. Throughout the day, 11,484 shares of Rand Logistics exchanged hands as compared to its average daily volume of 14,600 shares. The stock ranged in a price between $6.33-$6.49 after having opened the day at $6.34 as compared to the previous trading day's close of $6.29.

Rand Logistics, Inc., through its subsidiaries, provides bulk freight shipping services in the Great Lakes region. The company offers domestic port-to-port services. Rand Logistics has a market cap of $113.7 million and is part of the services sector. Shares are up 9.0% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Rand Logistics a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Rand Logistics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on RLOG go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Marine industry. The net income has decreased by 20.1% when compared to the same quarter one year ago, dropping from $2.58 million to $2.06 million.
  • The debt-to-equity ratio is very high at 3.03 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, RLOG has a quick ratio of 0.57, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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, RAND LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RAND LOGISTICS INC is currently lower than what is desirable, coming in at 29.87%. Regardless of RLOG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.75% trails the industry average.
  • RLOG, with its decline in revenue, underperformed when compared the industry average of 9.5%. Since the same quarter one year prior, revenues fell by 10.5%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.

You can view the full analysis from the report here: Rand Logistics 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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