3 Stocks Pushing The Transportation Industry Lower

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.

The Transportation industry as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Laggards within the Transportation industry included Radiant Logistics ( RLGT), down 2.3%, FreeSeas ( FREE), down 4.0%, Dynagas LNG Partners ( DLNG), down 4.5%, StealthGas ( GASS), down 3.0% and Frontline ( FRO), down 8.7%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Dynagas LNG Partners ( DLNG) is one of the companies that pushed the Transportation industry lower today. Dynagas LNG Partners was down $0.86 (4.5%) to $18.17 on heavy volume. Throughout the day, 118,011 shares of Dynagas LNG Partners exchanged hands as compared to its average daily volume of 48,700 shares. The stock ranged in price between $18.11-$19.50 after having opened the day at $19.05 as compared to the previous trading day's close of $19.03.

Dynagas LNG Partners has a market cap of $391.9 million and is part of the services sector. Shares are down 15.3% year-to-date as of the close of trading on Monday. Currently there are 4 analysts who rate Dynagas LNG Partners a buy, no analysts rate it a sell, and 1 rates it a hold.

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At the close, FreeSeas ( FREE) was down $0.01 (4.0%) to $0.13 on light volume. Throughout the day, 1,190,231 shares of FreeSeas exchanged hands as compared to its average daily volume of 3,715,600 shares. The stock ranged in price between $0.12-$0.13 after having opened the day at $0.13 as compared to the previous trading day's close of $0.13.

FreeSeas Inc., through its subsidiaries, provides drybulk shipping services. Its vessels carry various drybulk commodities, such as iron ore, grain, and coal, as well as bauxite, phosphate, fertilizers, steel products, cement, sugar, and rice. FreeSeas has a market cap of $13.4 million and is part of the services sector. Shares are down 94.5% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates FreeSeas as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from TheStreet Ratings analysis on FREE go as follows:

  • FREE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 92.73%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • FREE's debt-to-equity ratio of 0.62 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 0.11 is very low and demonstrates very weak liquidity.
  • The revenue fell significantly faster than the industry average of 23.7%. Since the same quarter one year prior, revenues fell by 45.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Compared to other companies in the Marine industry and the overall market, FREESEAS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • FREESEAS 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. During the past fiscal year, FREESEAS INC continued to lose money by earning -$29.37 versus -$220.50 in the prior year.

You can view the full analysis from the report here: FreeSeas Ratings Report

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Radiant Logistics ( RLGT) was another company that pushed the Transportation industry lower today. Radiant Logistics was down $0.09 (2.3%) to $3.75 on light volume. Throughout the day, 45,231 shares of Radiant Logistics exchanged hands as compared to its average daily volume of 117,500 shares. The stock ranged in price between $3.75-$3.82 after having opened the day at $3.76 as compared to the previous trading day's close of $3.84.

Radiant Logistics, Inc. provides non-asset based transportation and logistics services in the United States and internationally. Radiant Logistics has a market cap of $132.1 million and is part of the services sector. Shares are up 42.5% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Radiant Logistics a buy, no analysts rate it a sell, and none rate it a hold.

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 and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from TheStreet Ratings analysis on RLGT go as follows:

  • The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 26.7%. 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.
  • RLGT's debt-to-equity ratio is very low at 0.18 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 1.21, which illustrates the ability to avoid short-term cash problems.
  • Compared to its closing price of one year ago, RLGT's share price has jumped by 65.19%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • RADIANT LOGISTICS INC's earnings per share declined by 42.9% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, RADIANT LOGISTICS INC increased its bottom line by earning $0.11 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus $0.11).
  • 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 greatly underperformed compared to the Air Freight & Logistics industry average. The net income has decreased by 10.1% when compared to the same quarter one year ago, dropping from $2.35 million to $2.12 million.

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

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