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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 Industrial Goods sector as a whole closed the day down 2.6% versus the S&P 500, which was down 2.1%. Laggards within the Industrial Goods sector included

LGL Group

(

LGL

), down 2.2%,

Intelligent Systems

(

INS

), down 6.0%,

Taylor Devices

(

TAYD

), down 4.5%,

Compx International

(

TheStreet Recommends

CIX

), down 1.8% and

Ultralife Batteries

(

ULBI

), down 2.1%.

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

Ultralife Batteries

(

ULBI

) is one of the companies that pushed the Industrial Goods sector lower today. Ultralife Batteries was down $0.07 (2.1%) to $3.19 on light volume. Throughout the day, 6,020 shares of Ultralife Batteries exchanged hands as compared to its average daily volume of 24,500 shares. The stock ranged in price between $3.14-$3.27 after having opened the day at $3.16 as compared to the previous trading day's close of $3.26.

Ultralife Corporation offers power and communications solutions in the United States and internationally. It operates through two segments, Battery & Energy Products and Communications Systems. Ultralife Batteries has a market cap of $56.3 million and is part of the consumer durables industry. Shares are down 8.2% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Ultralife Batteries

as a

sell

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

Highlights from TheStreet Ratings analysis on ULBI go as follows:

  • 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 Electrical Equipment industry and the overall market, ULTRALIFE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.72 million or 162.56% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for ULTRALIFE CORP is currently lower than what is desirable, coming in at 32.67%. Regardless of ULBI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ULBI's net profit margin of -8.94% significantly underperformed when compared to the industry average.
  • ULBI has underperformed the S&P 500 Index, declining 19.33% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ULBI, with its decline in revenue, slightly underperformed the industry average of 6.0%. Since the same quarter one year prior, revenues fell by 12.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here:

Ultralife Batteries 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,

Compx International

(

CIX

) was down $0.19 (1.8%) to $10.22 on light volume. Throughout the day, 961 shares of Compx International exchanged hands as compared to its average daily volume of 6,100 shares. The stock ranged in price between $10.22-$10.33 after having opened the day at $10.33 as compared to the previous trading day's close of $10.41.

CompX International Inc. manufactures and sells security products and recreational marine components primarily in North America. The company operates through two segments, Security Products and Marine Components. Compx International has a market cap of $24.7 million and is part of the consumer durables industry. Shares are down 26.1% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Compx International a buy, no analysts rate it a sell, and none 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

Compx International

as a

hold

. 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 and attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on CIX go as follows:

  • CIX's revenue growth has slightly outpaced the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 11.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CIX 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 4.29, which clearly demonstrates the ability to cover short-term cash needs.
  • 35.30% is the gross profit margin for COMPX INTERNATIONAL INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.52% trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Commercial Services & Supplies industry and the overall market, COMPX INTERNATIONAL INC's return on equity is below that of both the industry average and the S&P 500.
  • CIX has underperformed the S&P 500 Index, declining 18.87% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

You can view the full analysis from the report here:

Compx International 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.

LGL Group

(

LGL

) was another company that pushed the Industrial Goods sector lower today. LGL Group was down $0.08 (2.2%) to $3.54 on light volume. Throughout the day, 1,441 shares of LGL Group exchanged hands as compared to its average daily volume of 4,400 shares. The stock ranged in price between $3.52-$3.71 after having opened the day at $3.55 as compared to the previous trading day's close of $3.62.

The LGL Group, Inc., through its subsidiaries, designs, manufactures, and markets standard and custom-engineered electronic components in the United States and internationally. LGL Group has a market cap of $10.4 million and is part of the consumer durables industry. Shares are down 33.1% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates

LGL Group

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow 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 LGL go as follows:

  • 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 Electronic Equipment, Instruments & Components industry and the overall market, LGL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LGL GROUP INC is currently lower than what is desirable, coming in at 27.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -21.69% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.04 million or 108.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LGL'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 36.68%, 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.
  • LGL GROUP INC 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, LGL GROUP INC reported poor results of -$3.16 versus -$0.51 in the prior year.

You can view the full analysis from the report here:

LGL Group 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.