3 Stocks Advancing The Industrial Industry

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 12 points (0.1%) at 16,545 as of Thursday, May 22, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,121 issues advancing vs. 844 declining with 178 unchanged.

The Industrial industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.3%. Top gainers within the Industrial industry included Continental Materials ( CUO), up 3.5%, P & F Industries ( PFIN), up 2.8%, Compx International ( CIX), up 2.5%, Ultralife Batteries ( ULBI), up 1.8% and Gencor Industries ( GENC), up 3.0%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Gencor Industries ( GENC) is one of the companies that pushed the Industrial industry higher today. Gencor Industries was up $0.29 (3.0%) to $9.94 on light volume. Throughout the day, 4,557 shares of Gencor Industries exchanged hands as compared to its average daily volume of 17,500 shares. The stock ranged in a price between $9.69-$9.94 after having opened the day at $9.74 as compared to the previous trading day's close of $9.65.

Gencor Industries, Inc., together with its subsidiaries, designs, manufactures, and sells heavy machinery used in the production of highway construction materials, synthetic fuels, and environmental control equipment. Gencor Industries has a market cap of $77.3 million and is part of the consumer goods sector. Shares are up 1.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Gencor Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Gencor Industries as a buy. Among the primary strengths of the company is its solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on GENC go as follows:

  • Compared to its closing price of one year ago, GENC's share price has jumped by 36.23%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • GENCOR INDUSTRIES INC's earnings per share declined by 35.5% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, GENCOR INDUSTRIES INC increased its bottom line by earning $0.71 versus $0.47 in the prior year.
  • GENC, with its decline in revenue, underperformed when compared the industry average of 6.4%. Since the same quarter one year prior, revenues fell by 18.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Machinery industry. The net income has significantly decreased by 36.2% when compared to the same quarter one year ago, falling from $2.98 million to $1.90 million.

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

At the close, Ultralife Batteries ( ULBI) was up $0.07 (1.8%) to $4.03 on light volume. Throughout the day, 4,307 shares of Ultralife Batteries exchanged hands as compared to its average daily volume of 36,600 shares. The stock ranged in a price between $3.92-$4.07 after having opened the day at $4.04 as compared to the previous trading day's close of $3.96.

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 $70.3 million and is part of the consumer goods sector. Shares are up 11.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Ultralife Batteries a buy, no analysts rate it a sell, and none rate it a hold.

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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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Compx International ( CIX) was another company that pushed the Industrial industry higher today. Compx International was up $0.28 (2.5%) to $11.34 on average volume. Throughout the day, 8,489 shares of Compx International exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in a price between $11.28-$12.25 after having opened the day at $11.43 as compared to the previous trading day's close of $11.06.

CompX International Inc. manufactures and sells security products and recreational marine components primarily in North America. The company operates through two segments, Security Products and Marine Components. Compx International has a market cap of $26.0 million and is part of the consumer goods sector. Shares are down 22.9% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Compx International a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Compx International as a hold. 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 and increase in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on CIX go as follows:

  • The revenue growth came in higher than the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 20.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CIX 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 4.46, which clearly demonstrates the ability to cover short-term cash needs.
  • COMPX INTERNATIONAL 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 year. During the past fiscal year, COMPX INTERNATIONAL INC increased its bottom line by earning $0.49 versus $0.28 in the prior year.
  • CIX has underperformed the S&P 500 Index, declining 16.11% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for COMPX INTERNATIONAL INC is currently lower than what is desirable, coming in at 30.23%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 8.13% is above that of the industry average.

You can view the full analysis from the report here: Compx International 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.

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.

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