3 Stocks Pushing The Materials & Construction Industry 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 Materials & Construction industry as a whole was unchanged today versus the S&P 500, which was up 0.6%. Laggards within the Materials & Construction industry included Avalon Holdings ( AWX), down 2.0%, Jewett-Cameron Trading ( JCTCF), down 1.8%, Skyline ( SKY), down 5.3%, Guanwei Recycling ( GPRC), down 12.2% and James Hardie Industries ( JHX), down 3.3%.

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

Apogee ( APOG) is one of the companies that pushed the Materials & Construction industry lower today. Apogee was down $0.65 (2.1%) to $29.63 on average volume. Throughout the day, 161,271 shares of Apogee exchanged hands as compared to its average daily volume of 196,500 shares. The stock ranged in price between $29.04-$30.19 after having opened the day at $30.16 as compared to the previous trading day's close of $30.28.

Apogee Enterprises, Inc., together with its subsidiaries, engages in the design and development of glass products, services, and systems primarily in North America, Europe, and Brazil. Apogee has a market cap of $908.7 million and is part of the industrial goods sector. Shares are down 15.7% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Apogee a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Apogee 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, solid stock price performance, impressive record of earnings per share growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on APOG 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 19.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • APOG's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Powered by its strong earnings growth of 80.00% and other important driving factors, this stock has surged by 26.30% 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, APOG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • APOGEE ENTERPRISES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APOGEE ENTERPRISES INC increased its bottom line by earning $0.95 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($1.42 versus $0.95).

You can view the full analysis from the report here: Apogee Ratings Report

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At the close, James Hardie Industries ( JHX) was down $2.20 (3.3%) to $63.68 on light volume. Throughout the day, 1,614 shares of James Hardie Industries exchanged hands as compared to its average daily volume of 4,400 shares. The stock ranged in price between $63.48-$63.97 after having opened the day at $63.75 as compared to the previous trading day's close of $65.88.

James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement products and systems for interior and exterior building construction applications primarily in the United States, Canada, Australia, New Zealand, the Philippines, and Europe. James Hardie Industries has a market cap of $5.7 billion and is part of the industrial goods sector. Shares are up 14.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate James Hardie Industries a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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TheStreet Ratings rates James Hardie Industries 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, solid stock price performance, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on JHX go as follows:

  • JHX's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 10.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • JHX's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 25.67% 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, JHX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 38.82% is the gross profit margin for JAMES HARDIE INDUSTRIES PLC which we consider to be strong. It has increased from the same quarter the previous year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction Materials industry. The net income increased by 192.7% when compared to the same quarter one year prior, rising from $31.50 million to $92.20 million.

You can view the full analysis from the report here: James Hardie 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.

Guanwei Recycling ( GPRC) was another company that pushed the Materials & Construction industry lower today. Guanwei Recycling was down $0.28 (12.2%) to $2.01 on heavy volume. Throughout the day, 153,514 shares of Guanwei Recycling exchanged hands as compared to its average daily volume of 85,600 shares. The stock ranged in price between $1.94-$2.25 after having opened the day at $2.25 as compared to the previous trading day's close of $2.29.

Guanwei Recycling Corp. engages in the manufacture and distribution of low density polyethylene (LDPE) and other recycled plastics products primarily in the People's Republic of China and internationally. Guanwei Recycling has a market cap of $24.5 million and is part of the industrial goods sector. Shares are down 20.5% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Guanwei Recycling as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

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 GPRC go as follows:

  • Compared to its closing price of one year ago, GPRC's share price has jumped by 84.62%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GPRC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GPRC 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 7.54, which clearly demonstrates the ability to cover short-term cash needs.
  • GPRC, with its decline in revenue, underperformed when compared the industry average of 4.6%. Since the same quarter one year prior, revenues fell by 11.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Commercial Services & Supplies industry and the overall market, GUANWEI RECYCLING CORP's return on equity exceeds that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Guanwei Recycling 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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