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 Wholesale industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.4%. Laggards within the Wholesale industry included

Empire Resources

(

ERS

), down 2.2%,

NL Industries

(

NL

), down 2.1%,

Wayside Technology Group

(

WSTG

), down 2.9%,

InfoSonics

(

IFON

), down 6.9% and

Lawson Products

(

LAWS

), down 2.1%.

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

InfoSonics

(

IFON

) is one of the companies that pushed the Wholesale industry lower today. InfoSonics was down $0.10 (6.9%) to $1.35 on light volume. Throughout the day, 44,732 shares of InfoSonics exchanged hands as compared to its average daily volume of 139,600 shares. The stock ranged in price between $1.35-$1.45 after having opened the day at $1.45 as compared to the previous trading day's close of $1.45.

InfoSonics Corporation designs, develops, manufactures, and sells wireless telecommunication products and accessories to wireless carriers, distributors, retailers, dealer agents, resellers, and original equipment manufacturers. InfoSonics has a market cap of $20.0 million and is part of the services sector. Shares are up 33.0% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

InfoSonics

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and poor profit margins.

Highlights from TheStreet Ratings analysis on IFON go as follows:

  • 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 Communications Equipment industry. The net income has significantly decreased by 1961.8% when compared to the same quarter one year ago, falling from $0.03 million to -$0.63 million.
  • The gross profit margin for INFOSONICS CORP is rather low; currently it is at 16.29%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.77% is significantly below that of the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Communications Equipment industry and the overall market, INFOSONICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • This stock's share value has moved by only 47.00% over the past year. 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.
  • INFOSONICS CORP's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, INFOSONICS CORP continued to lose money by earning -$0.04 versus -$0.17 in the prior year.

You can view the full analysis from the report here:

InfoSonics 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,

Wayside Technology Group

(

WSTG

) was down $0.51 (2.9%) to $17.37 on light volume. Throughout the day, 7,098 shares of Wayside Technology Group exchanged hands as compared to its average daily volume of 9,800 shares. The stock ranged in price between $17.37-$17.71 after having opened the day at $17.71 as compared to the previous trading day's close of $17.88.

Wayside Technology Group, Inc. operates as an information technology channel company in the United States and Canada. The company resells computer software and hardware developed by others, as well as provides technical services to customers primarily in the United States and Canada. Wayside Technology Group has a market cap of $87.6 million and is part of the services sector. Shares are up 3.9% 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

Wayside Technology Group

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, attractive valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on WSTG go as follows:

  • The revenue growth came in higher than the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 28.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • WSTG 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
  • WAYSIDE TECHNOLOGY GROUP INC reported flat earnings per share in the most recent quarter. 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, WAYSIDE TECHNOLOGY GROUP INC increased its bottom line by earning $1.40 versus $1.18 in the prior year.

You can view the full analysis from the report here:

Wayside Technology 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.

NL Industries

(

NL

) was another company that pushed the Wholesale industry lower today. NL Industries was down $0.16 (2.1%) to $7.35 on light volume. Throughout the day, 10,506 shares of NL Industries exchanged hands as compared to its average daily volume of 15,700 shares. The stock ranged in price between $7.34-$7.60 after having opened the day at $7.56 as compared to the previous trading day's close of $7.51.

NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in the United States and internationally. NL Industries has a market cap of $349.5 million and is part of the services sector. Shares are down 12.7% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate NL Industries a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates

NL Industries

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its 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 NL go as follows:

  • The gross profit margin for NL INDUSTRIES is currently lower than what is desirable, coming in at 34.22%. It has decreased from the same quarter the previous year. Despite the weak results of the gross profit margin, the net profit margin of 52.46% has significantly outperformed against the industry average.
  • NL'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 35.49%, 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.
  • 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. Compared to other companies in the Commercial Services & Supplies industry and the overall market, NL INDUSTRIES's return on equity significantly trails that of both the industry average and the S&P 500.
  • NL INDUSTRIES reported significant earnings per share improvement 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, NL INDUSTRIES swung to a loss, reporting -$1.13 versus $1.16 in the prior year. This year, the market expects an improvement in earnings ($0.55 versus -$1.13).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 333.8% when compared to the same quarter one year prior, rising from -$5.94 million to $13.89 million.

You can view the full analysis from the report here:

NL Industries 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.