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The Aerospace/Defense industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.4%. Laggards within the Aerospace/Defense industry included

Micronet Enertec Technologies

(

MICT

), down 4.1%,

CPI Aerostructures

(

CVU

), down 3.6%,

Innovative Solutions and Support

(

ISSC

), down 5.1%,

Sifco Industries

(

SIF

), down 5.5% and

Kaman

(

KAMN

), down 1.7%.

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

Kaman

(

KAMN

) is one of the companies that pushed the Aerospace/Defense industry lower today. Kaman was down $0.68 (1.7%) to $38.84 on light volume. Throughout the day, 58,229 shares of Kaman exchanged hands as compared to its average daily volume of 87,700 shares. The stock ranged in price between $38.67-$39.47 after having opened the day at $39.23 as compared to the previous trading day's close of $39.52.

Kaman Corporation operates in the aerospace and industrial distribution markets. The company operates through two segments, Distribution and Aerospace. Kaman has a market cap of $1.0 billion and is part of the industrial goods sector. Shares are down 1.4% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts who rate Kaman 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

Kaman

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, reasonable valuation levels 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 KAMN go as follows:

  • KAMN's revenue growth has slightly outpaced the industry average of 7.2%. Since the same quarter one year prior, revenues slightly increased by 9.1%. 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 debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
  • KAMAN CORP's earnings per share declined by 22.1% 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, KAMAN CORP increased its bottom line by earning $2.09 versus $2.03 in the prior year. This year, the market expects an improvement in earnings ($2.28 versus $2.09).
  • In its most recent trading session, KAMN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.

You can view the full analysis from the report here:

Kaman Ratings Report

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At the close,

Innovative Solutions and Support

(

ISSC

) was down $0.20 (5.1%) to $3.74 on light volume. Throughout the day, 20,841 shares of Innovative Solutions and Support exchanged hands as compared to its average daily volume of 70,200 shares. The stock ranged in price between $3.73-$3.94 after having opened the day at $3.90 as compared to the previous trading day's close of $3.94.

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 $65.1 million and is part of the industrial goods sector. Shares are up 21.2% year-to-date as of the close of trading on Tuesday.

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

Innovative Solutions and Support

as a

hold

. The company's strengths can be seen in multiple areas, such as its 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, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on ISSC go as follows:

  • 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 3.63, which clearly demonstrates the ability to cover short-term cash needs.
  • 41.06% is the gross profit margin for INNOVATIVE SOLTNS & SUPP INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.83% is above that of the industry average.
  • The revenue fell significantly faster than the industry average of 0.7%. Since the same quarter one year prior, revenues fell by 39.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 41.1% when compared to the same quarter one year ago, falling from $1.01 million to $0.59 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Aerospace & Defense industry and the overall market, INNOVATIVE SOLTNS & SUPP INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Innovative Solutions and Support 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 $0.43 (3.6%) to $11.47 on average volume. Throughout the day, 10,735 shares of CPI Aerostructures exchanged hands as compared to its average daily volume of 12,300 shares. The stock ranged in price between $11.20-$11.78 after having opened the day at $11.78 as compared to the previous trading day's close of $11.90.

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 $97.5 million and is part of the industrial goods sector. Shares are up 12.5% year-to-date as of the close of trading on Tuesday. Currently there are 2 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

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

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:

  • CPI AEROSTRUCTURES INC's earnings per share declined by 13.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CPI AEROSTRUCTURES INC reported lower earnings of $0.92 versus $1.39 in the prior year. For the next year, the market is expecting a contraction of 14.1% in earnings ($0.79 versus $0.92).
  • 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 decreased by 11.2% when compared to the same quarter one year ago, dropping from $1.91 million to $1.70 million.
  • 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, CPI AEROSTRUCTURES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CPI AEROSTRUCTURES INC is rather low; currently it is at 21.71%. 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 7.89% is above that of the industry average.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, CVU has underperformed the S&P 500 Index, declining 14.88% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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.