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 up 0.3% versus the S&P 500, which was up 0.3%. Laggards within the Industrial Goods sector included Bonso Electronics International ( BNSO), down 4.1%, LGL Group ( LGL), down 3.8%, Tecumseh Products ( TECUB), down 2.0%, WSI Industries ( WSCI), down 1.9% and Industrial Services of America ( IDSA), down 4.6%.

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

Real Goods Solar ( RGSE) is one of the companies that pushed the Industrial Goods sector lower today. Real Goods Solar was down $0.25 (9.5%) to $2.37 on average volume. Throughout the day, 1,494,161 shares of Real Goods Solar exchanged hands as compared to its average daily volume of 1,916,200 shares. The stock ranged in price between $2.36-$2.60 after having opened the day at $2.55 as compared to the previous trading day's close of $2.62.

Real Goods Solar, Inc. operates as a residential and commercial solar energy engineering, procurement, and construction company in the United States. It provides commercial and residential solar energy solutions. Real Goods Solar has a market cap of $134.7 million and is part of the materials & construction industry. Shares are down 13.2% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Real Goods Solar a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Real Goods Solar as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on RGSE go as follows:

  • Currently the debt-to-equity ratio of 1.89 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, RGSE maintains a poor quick ratio of 0.97, which illustrates the inability to avoid short-term cash problems.
  • The gross profit margin for REAL GOODS SOLAR INC is rather low; currently it is at 19.89%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.37% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$7.74 million or 271.30% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, REAL GOODS SOLAR INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • This stock has increased by 54.04% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in RGSE do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

You can view the full analysis from the report here: Real Goods Solar Ratings Report

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At the close, Industrial Services of America ( IDSA) was down $0.22 (4.6%) to $4.55 on light volume. Throughout the day, 6,698 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in price between $4.55-$4.78 after having opened the day at $4.78 as compared to the previous trading day's close of $4.77.

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 $34.6 million and is part of the materials & construction industry. Shares are up 54.6% year-to-date as of the close of trading on Thursday.

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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.

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

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LGL Group ( LGL) was another company that pushed the Industrial Goods sector lower today. LGL Group was down $0.18 (3.8%) to $4.51 on light volume. Throughout the day, 1,338 shares of LGL Group exchanged hands as compared to its average daily volume of 4,600 shares. The stock ranged in price between $4.50-$4.52 after having opened the day at $4.52 as compared to the previous trading day's close of $4.69.

The LGL Group, Inc., through its subsidiaries, designs, manufactures, and markets standard and custom-engineered electronic components in the United States and internationally. LGL Group has a market cap of $12.2 million and is part of the materials & construction industry. Shares are down 13.3% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates LGL Group 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, poor profit margins and weak operating cash flow.

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 LGL go as follows:

  • LGL GROUP 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, LGL GROUP INC reported poor results of -$3.16 versus -$0.51 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 896.5% when compared to the same quarter one year ago, falling from -$0.20 million to -$1.97 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 Electronic Equipment, Instruments & Components industry and the overall market, LGL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LGL GROUP INC is currently lower than what is desirable, coming in at 26.45%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -34.37% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$0.60 million or 28.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: LGL 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.

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