3 Stocks Moving The Transportation Industry Upward

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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 8.70 points (-0.1%) at 17,070 as of Thursday, Sept. 4, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,021 issues advancing vs. 2,057 declining with 126 unchanged.

The Transportation industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.2%. Top gainers within the Transportation industry included China Metro-Rural Holdings ( CNR), up 2.3%, Globus Maritime ( GLBS), up 3.1%, Ultrapetrol Bahamas ( ULTR), up 4.2%, Eagle Bulk Shipping ( EGLE), up 1.8% and FreightCar America ( RAIL), up 2.6%.

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

Ultrapetrol Bahamas ( ULTR) is one of the companies that pushed the Transportation industry higher today. Ultrapetrol Bahamas was up $0.14 (4.2%) to $3.49 on light volume. Throughout the day, 78,947 shares of Ultrapetrol Bahamas exchanged hands as compared to its average daily volume of 112,300 shares. The stock ranged in a price between $3.37-$3.53 after having opened the day at $3.39 as compared to the previous trading day's close of $3.35.

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services in South America, Central America, Europe, North America, and Asia. The company operates in three segments: River Business, Offshore Supply Business, and Ocean Business. Ultrapetrol Bahamas has a market cap of $470.4 million and is part of the services sector. Shares are down 10.4% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Ultrapetrol Bahamas a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Ultrapetrol Bahamas as a hold. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on ULTR go as follows:

  • ULTRAPETROL BAHAMAS LTD 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. 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, ULTRAPETROL BAHAMAS LTD turned its bottom line around by earning $0.05 versus -$1.69 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus $0.05).
  • ULTR, with its decline in revenue, underperformed when compared the industry average of 9.5%. Since the same quarter one year prior, revenues fell by 18.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Marine industry and the overall market, ULTRAPETROL BAHAMAS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • 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 79.5% when compared to the same quarter one year ago, falling from $13.49 million to $2.77 million.
  • Net operating cash flow has significantly decreased to $2.66 million or 63.55% 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: Ultrapetrol Bahamas 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, Globus Maritime ( GLBS) was up $0.10 (3.1%) to $3.31 on light volume. Throughout the day, 5,199 shares of Globus Maritime exchanged hands as compared to its average daily volume of 13,300 shares. The stock ranged in a price between $3.28-$3.31 after having opened the day at $3.28 as compared to the previous trading day's close of $3.21.

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 $34.4 million and is part of the services sector. Shares are down 18.9% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Globus Maritime 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 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.

China Metro-Rural Holdings ( CNR) was another company that pushed the Transportation industry higher today. China Metro-Rural Holdings was up $0.02 (2.3%) to $0.90 on light volume. Throughout the day, 225 shares of China Metro-Rural Holdings exchanged hands as compared to its average daily volume of 20,300 shares. The stock ranged in a price between $0.90-$0.90 after having opened the day at $0.90 as compared to the previous trading day's close of $0.88.

China Metro-Rural Holdings has a market cap of $66.9 million and is part of the services sector. Shares are down 2.2% year-to-date as of the close of trading on Wednesday.

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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