3 Stocks Moving The Industrial Industry Upward

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 69 points (0.4%) at 16,675 as of Tuesday, May 27, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,940 issues advancing vs. 1,055 declining with 160 unchanged.

The Industrial industry as a whole closed the day up 1.0% versus the S&P 500, which was up 0.6%. Top gainers within the Industrial industry included LGL Group ( LGL), up 3.9%, Lime Energy ( LIME), up 3.1%, Highway Holdings ( HIHO), up 2.5%, Metalico ( MEA), up 1.6% and Marine Products ( MPX), up 2.8%.

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

Metalico ( MEA) is one of the companies that pushed the Industrial industry higher today. Metalico was up $0.02 (1.6%) to $1.30 on heavy volume. Throughout the day, 204,127 shares of Metalico exchanged hands as compared to its average daily volume of 134,800 shares. The stock ranged in a price between $1.25-$1.33 after having opened the day at $1.28 as compared to the previous trading day's close of $1.28.

Metalico, Inc., through its subsidiaries, is engaged in scrap metal recycling and lead metal product fabricating businesses. Metalico has a market cap of $61.7 million and is part of the industrial goods sector. Shares are down 38.2% year-to-date as of the close of trading on Friday. 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 23.98% 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 4.0%. 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

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, Lime Energy ( LIME) was up $0.08 (3.1%) to $2.66 on light volume. Throughout the day, 2,317 shares of Lime Energy exchanged hands as compared to its average daily volume of 12,400 shares. The stock ranged in a price between $2.56-$2.66 after having opened the day at $2.56 as compared to the previous trading day's close of $2.58.

Lime Energy Co. is engaged in designing and implementing energy efficiency programs for utilities in the United States. Lime Energy has a market cap of $9.6 million and is part of the industrial goods sector. Shares are down 10.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Lime 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 Lime 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 LIME 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 Electrical Equipment industry and the overall market, LIME ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LIME ENERGY CO is currently lower than what is desirable, coming in at 28.12%. Regardless of LIME's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, LIME's net profit margin of -21.66% significantly underperformed when compared to the industry average.
  • Looking at the price performance of LIME's shares over the past 12 months, there is not much good news to report: the stock is down 47.91%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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.
  • LIME ENERGY CO's earnings per share declined by 7.9% 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, LIME ENERGY CO continued to lose money by earning -$3.88 versus -$4.48 in the prior year.
  • LIME 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. Despite the fact that LIME's debt-to-equity ratio is low, the quick ratio, which is currently 0.61, displays a potential problem in covering short-term cash needs.

You can view the full analysis from the report here: Lime Energy 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.

LGL Group ( LGL) was another company that pushed the Industrial industry higher today. LGL Group was up $0.16 (3.9%) to $4.18 on average volume. Throughout the day, 6,392 shares of LGL Group exchanged hands as compared to its average daily volume of 5,300 shares. The stock ranged in a price between $4.10-$4.34 after having opened the day at $4.34 as compared to the previous trading day's close of $4.02.

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 $10.4 million and is part of the industrial goods sector. Shares are down 25.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate LGL Group a buy, no analysts rate it a sell, and none rate it a hold.

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 generally disappointing historical performance in the stock itself.

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 874.7% when compared to the same quarter one year ago, falling from -$0.08 million to -$0.81 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 29.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.19% is significantly below that of the industry average.
  • The share price of LGL GROUP INC has not done very well: it is down 24.73% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

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.

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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