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 closed the day down 0.6% versus the S&P 500, which was unchanged. Laggards within the Industrial Goods sector included Intelligent Systems ( INS), down 5.8%, American DG Energy ( ADGE), down 4.8%, Industrial Services of America ( IDSA), down 3.5%, Ultralife Batteries ( ULBI), down 2.0% and Marine Products ( MPX), down 3.1%.

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

Marine Products ( MPX) is one of the companies that pushed the Industrial Goods sector lower today. Marine Products was down $0.23 (3.1%) to $7.20 on light volume. Throughout the day, 7,708 shares of Marine Products exchanged hands as compared to its average daily volume of 23,200 shares. The stock ranged in price between $7.19-$7.48 after having opened the day at $7.37 as compared to the previous trading day's close of $7.43.

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats in the sportboat, deckboat, cruiser, sport yacht, and sport fishing markets worldwide. Marine Products has a market cap of $269.0 million and is part of the industrial industry. Shares are down 26.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Marine Products a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Marine Products 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, compelling growth in net income, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • MPX's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MPX 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 1.07, which illustrates the ability to avoid short-term cash problems.
  • 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 Leisure Equipment & Products industry average. The net income increased by 36.5% when compared to the same quarter one year prior, rising from $1.45 million to $1.98 million.
  • MARINE PRODUCTS CORP has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. We anticipate the company beginning to experience more growth in the coming year. During the past fiscal year, MARINE PRODUCTS CORP's EPS of $0.19 remained unchanged from the prior years' EPS of $0.19. This year, the market expects an improvement in earnings ($0.22 versus $0.19).
  • 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. In comparison to the other companies in the Leisure Equipment & Products industry and the overall market, MARINE PRODUCTS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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

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At the close, Ultralife Batteries ( ULBI) was down $0.08 (2.0%) to $3.95 on light volume. Throughout the day, 3,787 shares of Ultralife Batteries exchanged hands as compared to its average daily volume of 39,700 shares. The stock ranged in price between $3.90-$4.09 after having opened the day at $4.09 as compared to the previous trading day's close of $4.03.

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 $68.2 million and is part of the industrial industry. Shares are up 13.5% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Ultralife Batteries as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on ULBI go as follows:

  • ULBI 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 2.56, which clearly demonstrates the ability to cover short-term cash needs.
  • ULTRALIFE CORP 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. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, ULTRALIFE CORP's EPS of -$0.05 remained unchanged from the prior years' EPS of -$0.05. This year, the market expects an improvement in earnings ($0.06 versus -$0.05).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
  • The gross profit margin for ULTRALIFE CORP is currently lower than what is desirable, coming in at 28.36%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.41% is significantly below that of the industry average.

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

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Industrial Services of America ( IDSA) was another company that pushed the Industrial Goods sector lower today. Industrial Services of America was down $0.17 (3.5%) to $4.75 on light volume. Throughout the day, 3,382 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 14,300 shares. The stock ranged in price between $4.75-$4.86 after having opened the day at $4.86 as compared to the previous trading day's close of $4.92.

Industrial Services of America, Inc. operates as a recycler of stainless steel, ferrous, and non-ferrous scrap. The company operates in two segments, Recycling and Waste Services. Industrial Services of America has a market cap of $34.0 million and is part of the industrial industry. Shares are up 55.2% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Industrial Services of America as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins.

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Highlights from TheStreet Ratings analysis on IDSA go as follows:

  • INDUSTRIAL SERVICES AMER INC 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 two years. During the past fiscal year, INDUSTRIAL SERVICES AMER INC reported poor results of -$1.96 versus -$0.96 in the prior year.
  • 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 Commercial Services & Supplies industry. The net income has significantly decreased by 128.1% when compared to the same quarter one year ago, falling from -$4.50 million to -$10.27 million.
  • 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 Commercial Services & Supplies industry and the overall market, INDUSTRIAL SERVICES AMER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INDUSTRIAL SERVICES AMER INC is currently extremely low, coming in at 0.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -35.96% is significantly below that of the industry average.
  • IDSA, with its decline in revenue, underperformed when compared the industry average of 3.8%. Since the same quarter one year prior, revenues fell by 22.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Industrial Services of America 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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