3 Stocks Raising 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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 264.26 points (-1.5%) at 16,946 as of Thursday, Sept. 25, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 529 issues advancing vs. 2,563 declining with 118 unchanged.

The Transportation industry as a whole closed the day down 1.5% versus the S&P 500, which was down 1.6%. Top gainers within the Transportation industry included China Metro-Rural Holdings ( CNR), up 1.8%, Radiant Logistics ( RLGT), up 10.6%, Box Ships ( TEU), up 2.4% and Celadon Group ( CGI), up 2.5%.

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 $0.03 (2.4%) to $1.30 on heavy volume. Throughout the day, 417,101 shares of Box Ships exchanged hands as compared to its average daily volume of 144,500 shares. The stock ranged in a price between $1.22-$1.38 after having opened the day at $1.25 as compared to the previous trading day's close of $1.27.

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 $31.4 million and is part of the industrial goods sector. Shares are down 61.4% year-to-date as of the close of trading on Wednesday. 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:

  • The gross profit margin for BOX SHIPS INC is rather high; currently it is at 64.66%. Regardless of TEU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.38% trails the industry average.
  • The revenue fell significantly faster than the industry average of 10.2%. Since the same quarter one year prior, revenues fell by 27.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 decreased to $5.49 million or 44.31% 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

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At the close, Radiant Logistics ( RLGT) was up $0.35 (10.6%) to $3.65 on heavy volume. Throughout the day, 519,294 shares of Radiant Logistics exchanged hands as compared to its average daily volume of 50,200 shares. The stock ranged in a price between $3.35-$3.92 after having opened the day at $3.65 as compared to the previous trading day's close of $3.30.

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 $112.3 million and is part of the industrial goods sector. Shares are up 23.1% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Radiant Logistics a buy, no analysts rate it a sell, and none rate it a hold.

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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 5.7%. 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 41.85% 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.

China Metro-Rural Holdings ( CNR) was another company that pushed the Transportation industry higher today. China Metro-Rural Holdings was up $0.02 (1.8%) to $0.90 on light volume. Throughout the day, 10,015 shares of China Metro-Rural Holdings exchanged hands as compared to its average daily volume of 22,500 shares. The stock ranged in a price between $0.88-$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 $66.2 million and is part of the industrial goods sector. Shares are down 1.8% 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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