3 Stocks Pushing The Industrial Goods Sector Lower

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 was unchanged today versus the S&P 500, which was up 0.6%. Laggards within the Industrial Goods sector included Bonso Electronics International ( BNSO), down 8.4%, Breeze-Eastern ( BZC), down 1.9%, Avalon Holdings ( AWX), down 2.0%, Intelligent Systems ( INS), down 6.2% and GreenHunter Resources ( GRH), down 1.8%.

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

Hollysys Automation Technologies ( HOLI) is one of the companies that pushed the Industrial Goods sector lower today. Hollysys Automation Technologies was down $1.19 (5.5%) to $20.55 on average volume. Throughout the day, 683,766 shares of Hollysys Automation Technologies exchanged hands as compared to its average daily volume of 524,200 shares. The stock ranged in price between $20.08-$21.88 after having opened the day at $21.72 as compared to the previous trading day's close of $21.74.

Hollysys Automation Technologies Ltd. Hollysys Automation Technologies has a market cap of $1.3 billion and is part of the industrial industry. Shares are up 14.8% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Hollysys Automation Technologies a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Hollysys Automation Technologies as a buy. 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, good cash flow from operations, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on HOLI go as follows:

  • HOLI's very impressive revenue growth greatly exceeded the industry average of 7.0%. Since the same quarter one year prior, revenues leaped by 75.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HOLI's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, HOLI has a quick ratio of 1.65, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 34.78% and other important driving factors, this stock has surged by 88.53% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HOLI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Electronic Equipment, Instruments & Components industry average. The net income increased by 40.1% when compared to the same quarter one year prior, rising from $13.07 million to $18.32 million.
  • Net operating cash flow has significantly increased by 940.00% to $24.40 million when compared to the same quarter last year. In addition, HOLLYSYS AUTOMATION TECH LTD has also vastly surpassed the industry average cash flow growth rate of 63.65%.

You can view the full analysis from the report here: Hollysys Automation Technologies 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, GreenHunter Resources ( GRH) was down $0.02 (1.8%) to $0.96 on average volume. Throughout the day, 65,907 shares of GreenHunter Resources exchanged hands as compared to its average daily volume of 86,400 shares. The stock ranged in price between $0.96-$1.02 after having opened the day at $1.01 as compared to the previous trading day's close of $0.98.

GreenHunter Resources has a market cap of $33.8 million and is part of the industrial industry. Shares are down 13.8% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate GreenHunter Resources 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.

Highlights from TheStreet Ratings analysis on GRH go as follows:

You can view the full analysis from the report here: GreenHunter Resources 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.

Breeze-Eastern ( BZC) was another company that pushed the Industrial Goods sector lower today. Breeze-Eastern was down $0.19 (1.9%) to $9.73 on average volume. Throughout the day, 2,003 shares of Breeze-Eastern exchanged hands as compared to its average daily volume of 2,100 shares. The stock ranged in price between $9.72-$9.80 after having opened the day at $9.80 as compared to the previous trading day's close of $9.92.

Breeze-Eastern Corporation designs, develops, manufactures, sells, and services engineered mission equipment for specialty aerospace and defense applications. Breeze-Eastern has a market cap of $96.4 million and is part of the industrial industry. Shares are up 7.5% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Breeze-Eastern 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, expanding profit margins 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.

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 BZC go as follows:

  • BZC's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 12.2%. 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.
  • BZC 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 1.28, which illustrates the ability to avoid short-term cash problems.
  • BREEZE-EASTERN CORP's earnings per share declined by 5.5% 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, BREEZE-EASTERN CORP increased its bottom line by earning $0.42 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.44 versus $0.42).
  • 39.32% is the gross profit margin for BREEZE-EASTERN CORP which we consider to be strong. Regardless of BZC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.38% trails the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

You can view the full analysis from the report here: Breeze-Eastern 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.

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