3 Stocks Pushing The Industrial Goods Sector Lower

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The Industrial Goods sector as a whole closed the day up 0.8% versus the S&P 500, which was up 0.3%. Laggards within the Industrial Goods sector included Industrial Services of America ( IDSA), down 3.4%, Servotronics ( SVT), down 2.2%, NF Energy Saving ( NFEC), down 1.7%, Skyline ( SKY), down 1.8% and Metalico ( MEA), down 1.5%.

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

Metalico ( MEA) is one of the companies that pushed the Industrial Goods sector lower today. Metalico was down $0.02 (1.5%) to $1.29 on average volume. Throughout the day, 122,430 shares of Metalico exchanged hands as compared to its average daily volume of 133,900 shares. The stock ranged in price between $1.24-$1.32 after having opened the day at $1.31 as compared to the previous trading day's close of $1.31.

Metalico, Inc., through its subsidiaries, is engaged in scrap metal recycling and lead metal product fabricating businesses. Metalico has a market cap of $65.6 million and is part of the industrial industry. Shares are down 34.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Metalico a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Metalico as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on MEA go as follows:

  • 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, METALICO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $4.23 million or 43.36% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • MEA has underperformed the S&P 500 Index, declining 21.69% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for METALICO INC is currently extremely low, coming in at 7.75%. Regardless of MEA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -2.56% trails the industry average.
  • MEA, with its decline in revenue, slightly underperformed the industry average of 3.9%. Since the same quarter one year prior, revenues slightly dropped by 1.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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

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At the close, NF Energy Saving ( NFEC) was down $0.02 (1.7%) to $1.15 on light volume. Throughout the day, 22,849 shares of NF Energy Saving exchanged hands as compared to its average daily volume of 91,400 shares. The stock ranged in price between $1.14-$1.25 after having opened the day at $1.15 as compared to the previous trading day's close of $1.17.

NF Energy Saving Corporation, through its subsidiaries, engages in the production of heavy industrial components and products in the People's Republic of China. It operates through two segments, Heavy Manufacturing Business and Energy-saving Related Business. NF Energy Saving has a market cap of $6.4 million and is part of the industrial industry. Shares are down 26.4% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates NF Energy Saving 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 NFEC go as follows:

  • NF ENERGY SAVING 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, NF ENERGY SAVING CORP swung to a loss, reporting -$0.03 versus $0.01 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 Machinery industry. The net income has significantly decreased by 419.1% when compared to the same quarter one year ago, falling from $0.07 million to -$0.22 million.
  • 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 Machinery industry and the overall market, NF ENERGY SAVING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NF ENERGY SAVING CORP is currently lower than what is desirable, coming in at 31.18%. Regardless of NFEC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, NFEC's net profit margin of -13.86% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 6.4%. Since the same quarter one year prior, revenues fell by 48.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: NF Energy Saving 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 $0.16 (3.4%) to $4.62 on light volume. Throughout the day, 6,924 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 13,600 shares. The stock ranged in price between $4.61-$4.92 after having opened the day at $4.62 as compared to the previous trading day's close of $4.79.

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 $33.9 million and is part of the industrial industry. Shares are up 51.1% year-to-date as of the close of trading on Wednesday.

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 3.9%. 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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