NEW YORK (TheStreet) -- Industrials underperformed the broader markets in the third quarter, as August's selloff wreaked havoc on most S&P 500 sectors. 

The S&P 500 Industrials Index fell 7.4% for the three-month period, ending Sept. 30, while the broader S&P 500 fell 6.9% -- its worst quarterly performance in four years - as a result of the quarter's choppy markets.

The sector had some clear losers with several names in the industrial machinery industry and electrical components and equipment industry. Here are the 10 worst-performing utilities stocks in the third quarter, paired with TheStreet Ratings to let you know if you should buy or sell these stocks in the final quarter of the 2015.

TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

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FLR

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10. Fluor Corp. (FLR) - Get Report
Industry: Industrials/Construction & Engineering
Market Cap: $6 billion
Year-to-date return: -20.1%

TheStreet Said: TheStreet Ratings team rates FLUOR CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate FLUOR CORP (FLR) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 90.9% when compared to the same quarter one year prior, rising from $77.79 million to $148.51 million.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.15, which illustrates the ability to avoid short-term cash problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.7%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for FLUOR CORP is currently extremely low, coming in at 7.09%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 3.08% is above that of the industry average.
  • Net operating cash flow has decreased to $164.91 million or 31.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: FLR
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EMR

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9. Emerson Electric Co. (EMR) - Get Report
Industry: Industrials/Electrical Components & Equipment
Market Cap: $28.1 billion
Year-to-date return: -20.3%

TheStreet Said: TheStreet Ratings team rates EMERSON ELECTRIC CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate EMERSON ELECTRIC CO (EMR) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, 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 deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 Electrical Equipment industry and the overall market, EMERSON ELECTRIC CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • EMERSON ELECTRIC CO's earnings per share declined by 18.4% in the most recent quarter compared to 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, EMERSON ELECTRIC CO increased its bottom line by earning $3.03 versus $2.76 in the prior year. This year, the market expects an improvement in earnings ($3.22 versus $3.03).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 14.1%. Since the same quarter one year prior, revenues fell by 12.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly decreased to $499.00 million or 50.98% 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.
  • 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 Electrical Equipment industry average. The net income has decreased by 22.5% when compared to the same quarter one year ago, dropping from $728.00 million to $564.00 million.
  • You can view the full analysis from the report here: EMR
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FLS

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8. Flowserve Corp. (FLS) - Get Report
Industry: Industrials/Industrial Machinery
Market Cap: $5.4 billion
Year-to-date return: -21.9%

TheStreet Said: TheStreet Ratings team rates FLOWSERVE CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate FLOWSERVE CORP (FLS) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly increased by 51.59% to $111.27 million when compared to the same quarter last year. In addition, FLOWSERVE CORP has also vastly surpassed the industry average cash flow growth rate of -14.04%.
  • The debt-to-equity ratio is somewhat low, currently at 0.96, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
  • 36.40% is the gross profit margin for FLOWSERVE CORP which we consider to be strong. Regardless of FLS'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 6.45% trails the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 44.18%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 37.77% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 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 Machinery industry. The net income has significantly decreased by 39.3% when compared to the same quarter one year ago, falling from $123.51 million to $75.01 million.
  • You can view the full analysis from the report here: FLS
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CAT

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7. Caterpillar Inc. (CAT) - Get Report
Industry: Industrials/Construction & Farm Machinery & Heavy Trucks
Market Cap: $38.7 billion
Year-to-date return: -22.9%

TheStreet Said: TheStreet Ratings team rates CATERPILLAR INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate CATERPILLAR INC (CAT) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 35.04% is the gross profit margin for CATERPILLAR INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.76% trails the industry average.
  • 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. Compared to other companies in the Machinery industry and the overall market on the basis of return on equity, CATERPILLAR INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has declined marginally to $2,088.00 million or 6.66% when compared to the same quarter last year. Despite a decrease in cash flow of 6.66%, CATERPILLAR INC is in line with the industry average cash flow growth rate of -14.04%.
  • The debt-to-equity ratio is very high at 2.24 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CAT maintains a poor quick ratio of 0.95, which illustrates the inability to avoid short-term cash problems.
  • You can view the full analysis from the report here: CAT
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DE

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6. Deere & Co. (DE) - Get Report
Industry: Industrials
Market Cap: $24 billion
Year-to-date return: -23.7%

TheStreet Said: TheStreet Ratings team rates DEERE & CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate DEERE & CO (DE) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DE, with its decline in revenue, slightly underperformed the industry average of 14.2%. Since the same quarter one year prior, revenues fell by 20.1%. Weakness in the company's revenue seems to have hurt the 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. When compared to other companies in the Machinery industry and the overall market, DEERE & CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has decreased to $1,346.50 million or 11.06% when compared to the same quarter last year. Despite a decrease in cash flow of 11.06%, DEERE & CO is in line with the industry average cash flow growth rate of -14.04%.
  • The debt-to-equity ratio is very high at 4.81 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • The gross profit margin for DEERE & CO is currently lower than what is desirable, coming in at 31.06%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.73% trails that of the industry average.
  • You can view the full analysis from the report here: DE
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5. Eaton Corp. Plc (ETN) - Get Report
Industry: Industrials/Electrical Components & Equipment
Market Cap: $23.6 billion
Year-to-date return: -24%

TheStreet Said: TheStreet Ratings team rates EATON CORP PLC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate EATON CORP PLC (ETN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels, expanding profit margins, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 212.9% when compared to the same quarter one year prior, rising from $171.00 million to $535.00 million.
  • 35.95% is the gross profit margin for EATON CORP PLC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.95% is above that of the industry average.
  • The current debt-to-equity ratio, 0.56, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
  • 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. Compared to other companies in the Electrical Equipment industry and the overall market on the basis of return on equity, EATON CORP PLC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • You can view the full analysis from the report here: ETN
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IR

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4. Ingersoll-Rand Plc (IR) - Get Report
Industry: Industrials/Industrial Machinery
Market Cap: $13.4 billion
Year-to-date return: -24.7%

TheStreet Said: TheStreet Ratings team rates INGERSOLL-RAND PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate INGERSOLL-RAND PLC (IR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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 notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 14.2%. Since the same quarter one year prior, revenues slightly increased by 1.6%. 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 $295.20 million or 19.95% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.04%.
  • INGERSOLL-RAND PLC 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, INGERSOLL-RAND PLC increased its bottom line by earning $3.29 versus $2.08 in the prior year. This year, the market expects an improvement in earnings ($3.73 versus $3.29).
  • The debt-to-equity ratio is somewhat low, currently at 0.75, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.73 is somewhat weak and could be cause for future problems.
  • 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. In comparison to the other companies in the Machinery industry and the overall market, INGERSOLL-RAND PLC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • You can view the full analysis from the report here: IR
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PNR

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3. Pentair Plc (PNR) - Get Report
Industry: Industrials/Industrial Machinery
Market Cap: $8.9 billion
Year-to-date return: -25.7%

TheStreet Said: TheStreet Ratings team rates PENTAIR PLC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate PENTAIR PLC (PNR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • PENTAIR PLC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PENTAIR PLC increased its bottom line by earning $3.14 versus $2.51 in the prior year. This year, the market expects an improvement in earnings ($3.87 versus $3.14).
  • The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • 37.84% is the gross profit margin for PENTAIR PLC which we consider to be strong. Regardless of PNR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PNR's net profit margin of 8.89% compares favorably to the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 14.2%. Since the same quarter one year prior, revenues slightly dropped by 9.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Machinery industry average. The net income has decreased by 8.5% when compared to the same quarter one year ago, dropping from $161.50 million to $147.80 million.
  • You can view the full analysis from the report here: PNR
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URI

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2. United Rentals Inc. (URI) - Get Report
Industry: Industrials/Trading Companies & Distributors
Market Cap: $5.7 billion
Year-to-date return: -31.5%

TheStreet Said: TheStreet Ratings team rates UNITED RENTALS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate UNITED RENTALS INC (URI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 2.1%. 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.
  • 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. Compared to other companies in the Trading Companies & Distributors industry and the overall market, UNITED RENTALS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • UNITED RENTALS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, UNITED RENTALS INC increased its bottom line by earning $5.18 versus $3.63 in the prior year. This year, the market expects an improvement in earnings ($7.95 versus $5.18).
  • The gross profit margin for UNITED RENTALS INC is rather high; currently it is at 60.46%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.01% trails the industry average.
  • Net operating cash flow has slightly increased to $575.00 million or 5.31% when compared to the same quarter last year. Despite an increase in cash flow, UNITED RENTALS INC's cash flow growth rate is still lower than the industry average growth rate of 28.88%.
  • You can view the full analysis from the report here: URI
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JOY

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1. Joy Global Inc. (JOY)
Industry: Industrials/Construction & Farm Machinery & Heavy Trucks
Market Cap: $1.4 billion
Year-to-date return: -58.7%

TheStreet Said: TheStreet Ratings team rates JOY GLOBAL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate JOY GLOBAL INC (JOY) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations 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, unimpressive growth in net income and poor profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has increased to $115.95 million or 26.50% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.04%.
  • The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
  • 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 Machinery industry. The net income has significantly decreased by 37.0% when compared to the same quarter one year ago, falling from $71.29 million to $44.89 million.
  • The gross profit margin for JOY GLOBAL INC is currently lower than what is desirable, coming in at 32.07%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.66% trails that of the industry average.
  • You can view the full analysis from the report here: JOY