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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 Aerospace/Defense industry as a whole closed the day down 1.2% versus the S&P 500, which was down 0.6%. Laggards within the Aerospace/Defense industry included

Micronet Enertec Technologies

(

MICT

), down 5.0%,

Moog

(

MOG.B

), down 5.2%,

CPI Aerostructures

(

CVU

), down 3.5%,

CAE

(

TheStreet Recommends

CAE

), down 1.6% and

Erickson

(

EAC

), down 1.6%.

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

Erickson

(

EAC

) is one of the companies that pushed the Aerospace/Defense industry lower today. Erickson was down $0.23 (1.6%) to $14.52 on light volume. Throughout the day, 29,282 shares of Erickson exchanged hands as compared to its average daily volume of 41,000 shares. The stock ranged in price between $14.29-$15.15 after having opened the day at $14.61 as compared to the previous trading day's close of $14.75.

Erickson Incorporated provides aviation services to commercial and government customers. As of December 31, 2013, the company operated a fleet of 90 rotary-wing and fixed wing aircrafts, including a fleet of 20 heavy-lift Erickson S-64 aircranes. Erickson has a market cap of $206.6 million and is part of the industrial goods sector. Shares are down 29.1% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Erickson a buy, no analysts rate it a sell, and 4 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

Erickson

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on EAC go as follows:

  • The share price of ERICKSON INC has not done very well: it is down 17.53% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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 Aerospace & Defense industry. The net income has significantly decreased by 524.5% when compared to the same quarter one year ago, falling from -$1.22 million to -$7.59 million.
  • The debt-to-equity ratio is very high at 2.45 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, EAC maintains a poor quick ratio of 0.84, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Aerospace & Defense industry and the overall market, ERICKSON INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ERICKSON INC is rather low; currently it is at 21.88%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -10.23% is significantly below that of the industry average.

You can view the full analysis from the report here:

Erickson 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,

CAE

(

CAE

) was down $0.21 (1.6%) to $13.15 on heavy volume. Throughout the day, 51,512 shares of CAE exchanged hands as compared to its average daily volume of 28,800 shares. The stock ranged in price between $13.13-$13.40 after having opened the day at $13.39 as compared to the previous trading day's close of $13.36.

CAE Inc. provides simulation and modeling technologies, and integrated training services primarily to the civil aviation industry and defense forces worldwide. CAE has a market cap of $3.5 billion and is part of the industrial goods sector. Shares are up 4.9% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts who rate CAE a buy, no analysts rate it a sell, and 1 rates 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

CAE

as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on CAE go as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • CAE INC has improved earnings per share by 35.3% 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, CAE INC increased its bottom line by earning $0.74 versus $0.53 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 39.2% when compared to the same quarter one year prior, rising from $43.10 million to $60.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 3.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CAE's debt-to-equity ratio of 0.81 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.82 is weak.

You can view the full analysis from the report here:

CAE 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.

CPI Aerostructures

(

CVU

) was another company that pushed the Aerospace/Defense industry lower today. CPI Aerostructures was down $0.44 (3.5%) to $12.08 on light volume. Throughout the day, 12,718 shares of CPI Aerostructures exchanged hands as compared to its average daily volume of 19,500 shares. The stock ranged in price between $12.02-$12.32 after having opened the day at $12.32 as compared to the previous trading day's close of $12.52.

CPI Aerostructures, Inc. is engaged in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in the commercial and defense markets. CPI Aerostructures has a market cap of $107.9 million and is part of the industrial goods sector. Shares are down 15.2% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate CPI Aerostructures a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates

CPI Aerostructures

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and feeble growth in the company's earnings per share.

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

Highlights from TheStreet Ratings analysis on CVU go as follows:

  • CVU's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 9.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.23 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 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. In comparison to the other companies in the Aerospace & Defense industry and the overall market, CPI AEROSTRUCTURES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to -$8.69 million or 18.33% 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:

CPI Aerostructures 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.