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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 1.9% versus the S&P 500, which was down 1.8%. Laggards within the Aerospace/Defense industry included

Micronet Enertec Technologies

(

MICT

), down 3.0%,

Breeze-Eastern

(

BZC

), down 6.1%,

Sifco Industries

(

SIF

), down 5.9%,

CAE

(

TheStreet Recommends

CAE

), down 2.2% and

Innovative Solutions and Support

(

ISSC

), down 4.2%.

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

Innovative Solutions and Support

(

ISSC

) is one of the companies that pushed the Aerospace/Defense industry lower today. Innovative Solutions and Support was down $0.26 (4.2%) to $5.95 on light volume. Throughout the day, 45,879 shares of Innovative Solutions and Support exchanged hands as compared to its average daily volume of 68,900 shares. The stock ranged in price between $5.79-$6.08 after having opened the day at $5.99 as compared to the previous trading day's close of $6.21.

Innovative Solutions and Support, Inc., a systems integrator, designs, manufactures, sells, and services flight guidance and cockpit display systems. Innovative Solutions and Support has a market cap of $111.4 million and is part of the industrial goods sector. Shares are down 14.8% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Innovative Solutions and Support

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on ISSC go as follows:

  • ISSC's very impressive revenue growth greatly exceeded the industry average of 0.6%. Since the same quarter one year prior, revenues leaped by 52.1%. 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.
  • ISSC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.84, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has slightly increased to -$0.59 million or 1.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -25.32%.
  • INNOVATIVE SOLTNS & SUPP INC's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, INNOVATIVE SOLTNS & SUPP INC reported lower earnings of $0.12 versus $0.19 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus $0.12).
  • 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 29.2% when compared to the same quarter one year ago, falling from $1.11 million to $0.78 million.

You can view the full analysis from the report here:

Innovative Solutions and Support Ratings Report

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At the close,

CAE

(

CAE

) was down $0.29 (2.2%) to $12.78 on light volume. Throughout the day, 16,598 shares of CAE exchanged hands as compared to its average daily volume of 30,100 shares. The stock ranged in price between $12.75-$12.95 after having opened the day at $12.91 as compared to the previous trading day's close of $13.07.

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 $3.4 billion and is part of the industrial goods sector. Shares are up 2.6% year-to-date as of the close of trading on Wednesday. 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 revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income 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:

  • CAE's revenue growth has slightly outpaced the industry average of 0.6%. 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.
  • 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.
  • 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.

Breeze-Eastern

(

BZC

) was another company that pushed the Aerospace/Defense industry lower today. Breeze-Eastern was down $0.68 (6.1%) to $10.52 on average volume. Throughout the day, 17,918 shares of Breeze-Eastern exchanged hands as compared to its average daily volume of 14,700 shares. The stock ranged in price between $10.25-$11.04 after having opened the day at $10.97 as compared to the previous trading day's close of $11.20.

Breeze-Eastern Corporation designs, develops, manufactures, sells, and services engineered mission equipment for specialty aerospace and defense applications. Breeze-Eastern has a market cap of $115.4 million and is part of the industrial goods sector. Shares are up 21.6% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates

Breeze-Eastern

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, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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 BZC go as follows:

  • The revenue growth greatly exceeded the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 35.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BZC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, BZC has a quick ratio of 1.90, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 141.66% and other important driving factors, this stock has surged by 36.14% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • BREEZE-EASTERN CORP 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. We feel that this trend should continue. During the past fiscal year, BREEZE-EASTERN CORP increased its bottom line by earning $0.58 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.58).
  • 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 143.5% when compared to the same quarter one year prior, rising from $1.16 million to $2.82 million.

You can view the full analysis from the report here:

Breeze-Eastern 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.