- 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, ACORN ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ACORN ENERGY INC is rather low; currently it is at 16.81%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -90.18% is significantly below that of the industry average.
- ACFN'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 72.65%, 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 company, on the basis of net income growth 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 increased by 2.4% when compared to the same quarter one year prior, going from -$5.38 million to -$5.25 million.
- ACORN ENERGY INC has improved earnings per share by 20.0% 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, ACORN ENERGY INC reported poor results of -$1.60 versus -$0.94 in the prior year. This year, the market expects an improvement in earnings (-$0.56 versus -$1.60).
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 Computer Hardware industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.6%. Laggards within the Computer Hardware industry included Overland Storage ( OVRL), down 3.7%, Xplore Technologies ( XPLR), down 1.9%, Lantronix ( LTRX), down 4.3%, Acorn Energy ( ACFN), down 2.3% and Hutchinson Technology ( HTCH), down 2.2%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Acorn Energy ( ACFN) is one of the companies that pushed the Computer Hardware industry lower today. Acorn Energy was down $0.04 (2.3%) to $1.72 on average volume. Throughout the day, 253,264 shares of Acorn Energy exchanged hands as compared to its average daily volume of 194,200 shares. The stock ranged in price between $1.69-$1.81 after having opened the day at $1.77 as compared to the previous trading day's close of $1.76. Acorn Energy, Inc., through its subsidiaries, provides technology driven solutions for energy infrastructure asset management worldwide. It offers oil and gas sensor systems, a fiber optic sensing system for the energy, commercial security, and defense markets. Acorn Energy has a market cap of $46.6 million and is part of the technology sector. Shares are down 48.4% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Acorn Energy 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 Acorn Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on ACFN go as follows: