The Conglomerates sector as a whole closed the day down 1.8% versus the S&P 500, which was down 1.3%. Laggards within the Conglomerates sector included

Pingtan Marine Enterprise

(

PME

), down 6.2%,

SAExploration Holdings

(

SAEX

), down 3.0%,

MGT Capital Investments

(

MGT

), down 19.4%,

RMG Networks

(

RMGN

), down 3.9% and

Tecnoglass

(

TGLS

), down 3.4%.

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

Icahn

(

IEP

) is one of the companies that pushed the Conglomerates sector lower today. Icahn was down $3.34 (4.6%) to $68.80 on heavy volume. Throughout the day, 232,621 shares of Icahn exchanged hands as compared to its average daily volume of 84,600 shares. The stock ranged in price between $68.56-$72.00 after having opened the day at $72.00 as compared to the previous trading day's close of $72.14.

Icahn Enterprises L.P., through its subsidiaries, operates in investment, automotive, energy, metals, railcar, gaming, food packaging, real estate, and home fashion businesses in the United States, Germany, and Internationally. Its Investment segment operates various private investment funds. Icahn has a market cap of $9.2 billion and is part of the conglomerates industry. Shares are down 22.0% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Icahn a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates

Icahn

as a

hold

. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on IEP go as follows:

  • Net operating cash flow has significantly increased by 1041.66% to $339.00 million when compared to the same quarter last year. In addition, ICAHN ENTERPRISES LP has also vastly surpassed the industry average cash flow growth rate of 3.48%.
  • IEP, with its decline in revenue, underperformed when compared the industry average of 4.2%. Since the same quarter one year prior, revenues fell by 22.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ICAHN ENTERPRISES LP 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ICAHN ENTERPRISES LP swung to a loss, reporting -$2.92 versus $8.98 in the prior year. This year, the market expects an improvement in earnings ($7.24 versus -$2.92).
  • The debt-to-equity ratio is very high at 2.30 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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 Industrial Conglomerates industry and the overall market, ICAHN ENTERPRISES LP'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:

Icahn Ratings Report

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At the close,

Tecnoglass

(

TGLS

) was down $0.47 (3.4%) to $13.20 on heavy volume. Throughout the day, 62,371 shares of Tecnoglass exchanged hands as compared to its average daily volume of 24,800 shares. The stock ranged in price between $13.15-$13.71 after having opened the day at $13.19 as compared to the previous trading day's close of $13.67.

Tecnoglass has a market cap of $363.8 million and is part of the conglomerates industry. Shares are up 34.7% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Tecnoglass a buy, no analysts rate it a sell, and none rate it a hold.

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RMG Networks

(

RMGN

) was another company that pushed the Conglomerates sector lower today. RMG Networks was down $0.03 (3.9%) to $0.83 on light volume. Throughout the day, 70,053 shares of RMG Networks exchanged hands as compared to its average daily volume of 93,700 shares. The stock ranged in price between $0.82-$1.02 after having opened the day at $0.95 as compared to the previous trading day's close of $0.86.

RMG Networks Holding Corporation provides enterprise-class digital signage solutions and media applications. RMG Networks has a market cap of $34.1 million and is part of the conglomerates industry. Shares are down 30.9% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates

RMG Networks

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on RMGN go as follows:

  • Net operating cash flow has declined marginally to -$2.34 million or 0.90% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, RMG NETWORKS HOLDING CORP has marginally lower results.
  • RMGN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 40.72%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • RMG NETWORKS HOLDING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, RMG NETWORKS HOLDING CORP reported poor results of -$5.74 versus -$2.77 in the prior year.
  • RMGN's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.97 is somewhat weak and could be cause for future problems.
  • Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, RMG NETWORKS HOLDING CORP'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:

RMG Networks Ratings Report

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