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.

One out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 25.91 points (-0.1%) at 17,627 as of Friday, Nov. 14, 2014, 1:25 PM ET. The NYSE advances/declines ratio sits at 1,592 issues advancing vs. 1,405 declining with 178 unchanged.

The Transportation industry as a whole closed the day up 0.3% versus the S&P 500, which was unchanged. Top gainers within the Transportation industry included PHI ( PHII), up 4.1%, Providence & Worcester Railroad ( PWX), up 4.4%, Pangaea Logistics Solutions ( PANL), up 3.0%, Air T ( AIRT), up 3.2% and Radiant Logistics ( RLGT), up 4.9%.

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

Air T ( AIRT) is one of the companies that pushed the Transportation industry higher today. Air T was up $0.49 (3.2%) to $16.00 on heavy volume. Throughout the day, 20,265 shares of Air T exchanged hands as compared to its average daily volume of 11,200 shares. The stock ranged in a price between $15.63-$16.06 after having opened the day at $15.87 as compared to the previous trading day's close of $15.51.

Air T, Inc., through its subsidiaries, provides overnight air cargo, ground equipment sales, and ground support services in the United States and internationally. Air T has a market cap of $36.6 million and is part of the services sector. Shares are up 29.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Air T 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 Air T 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, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on AIRT go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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.
  • AIRT's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AIRT has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Air Freight & Logistics industry and the overall market, AIR T INC's return on equity is below that of both the industry average and the S&P 500.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • AIR T INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, AIR T INC reported lower earnings of $0.60 versus $0.68 in the prior year.

You can view the full analysis from the report here: Air T 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, Pangaea Logistics Solutions ( PANL) was up $0.17 (3.0%) to $5.75 on average volume. Throughout the day, 16,301 shares of Pangaea Logistics Solutions exchanged hands as compared to its average daily volume of 18,000 shares. The stock ranged in a price between $5.56-$5.83 after having opened the day at $5.58 as compared to the previous trading day's close of $5.58.

Pangaea Logistics Solutions has a market cap of $72.4 million and is part of the services sector. Shares are down 40.6% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

PHI ( PHII) was another company that pushed the Transportation industry higher today. PHI was up $1.68 (4.1%) to $42.29 on light volume. Throughout the day, 208 shares of PHI exchanged hands as compared to its average daily volume of 1,200 shares. The stock ranged in a price between $42.29-$42.29 after having opened the day at $42.29 as compared to the previous trading day's close of $40.61.

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 $123.5 million and is part of the services sector. Shares are up 7.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate PHI a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates PHI as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, 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:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.8%. 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 15.01%.
  • 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 a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
  • PHI INC's earnings per share declined by 32.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, PHI INC increased its bottom line by earning $3.77 versus $1.16 in the prior 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.

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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