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.
The Conglomerates sector as a whole closed the day down 2.1% versus the S&P 500, which was down 1.7%. Laggards within the Conglomerates sector included
), down 4.8%,
), down 10.9%,
), down 1.9%,
), down 5.2% and
), down 1.7%.
TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:
) is one of the companies that pushed the Conglomerates sector lower today. Global Eagle Entertainment was down $0.44 (3.3%) to $13.07 on light volume. Throughout the day, 314,761 shares of Global Eagle Entertainment exchanged hands as compared to its average daily volume of 452,500 shares. The stock ranged in price between $12.90-$13.30 after having opened the day at $13.22 as compared to the previous trading day's close of $13.51.
Global Eagle Entertainment Inc., a content and connectivity distribution and services company, provides in-flight video content, e-commerce, and information services for the airline industry worldwide. The company operates through two segments, Connectivity and Content. Global Eagle Entertainment has a market cap of $1.0 billion and is part of the media industry. Shares are down 3.5% year-to-date as of the close of trading on Monday. Currently there are 5 analysts who rate Global Eagle Entertainment a buy, no analysts rate it a sell, and 1 rates it a hold.
TheStreet Ratings rates
Global Eagle Entertainment
. 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 impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.
Highlights from TheStreet Ratings analysis on ENT go as follows:
- The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues rose by 26.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ENT's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- ENT has underperformed the S&P 500 Index, declining 24.59% 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.
- The gross profit margin for GLOBAL EAGLE ENTERTAINMENT is currently lower than what is desirable, coming in at 26.27%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, ENT's net profit margin of -24.80% significantly underperformed when compared to the industry average.
You can view the full analysis from the report here:
At the close,
) was down $0.01 (1.7%) to $0.70 on light volume. Throughout the day, 73,657 shares of Rare Element Resources exchanged hands as compared to its average daily volume of 352,400 shares. The stock ranged in price between $0.68-$0.73 after having opened the day at $0.73 as compared to the previous trading day's close of $0.71.
Rare Element Resources has a market cap of $34.3 million and is part of the media industry. Shares are up 89.5% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Rare Element Resources a buy, no analysts rate it a sell, and none rate it a hold.
) was another company that pushed the Conglomerates sector lower today. RMG Networks was down $0.19 (10.9%) to $1.55 on heavy volume. Throughout the day, 3,544,600 shares of RMG Networks exchanged hands as compared to its average daily volume of 26,200 shares. The stock ranged in price between $1.43-$1.87 after having opened the day at $1.69 as compared to the previous trading day's close of $1.74.
RMG Networks has a market cap of $12.8 million and is part of the media industry. Shares are up 39.2% year-to-date as of the close of trading on Monday.