- HWCC's revenue growth has slightly outpaced the industry average of 2.1%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, HWCC has a quick ratio of 2.37, which demonstrates the ability of the company to cover short-term liquidity needs.
- HOUSTON WIRE & CABLE CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, HOUSTON WIRE & CABLE CO reported lower earnings of $0.45 versus $0.97 in the prior year. This year, the market expects an improvement in earnings ($0.87 versus $0.45).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Trading Companies & Distributors industry. The net income has decreased by 3.0% when compared to the same quarter one year ago, dropping from $3.86 million to $3.75 million.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, HWCC has underperformed the S&P 500 Index, declining 15.78% from its price level of one year ago. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
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 100 points (0.6%) at 16,838 as of Thursday, June 5, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,349 issues advancing vs. 623 declining with 153 unchanged. The Wholesale industry as a whole closed the day up 0.7% versus the S&P 500, which was up 0.6%. Top gainers within the Wholesale industry included China Auto Logistics ( CALI), up 1.8%, NL Industries ( NL), up 3.5%, Houston Wire & Cable ( HWCC), up 3.6%, Tessco Technologies ( TESS), up 2.3% and InfoSonics ( IFON), up 3.8%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Houston Wire & Cable ( HWCC) is one of the companies that pushed the Wholesale industry higher today. Houston Wire & Cable was up $0.41 (3.6%) to $11.91 on light volume. Throughout the day, 52,217 shares of Houston Wire & Cable exchanged hands as compared to its average daily volume of 74,500 shares. The stock ranged in a price between $11.45-$11.97 after having opened the day at $11.49 as compared to the previous trading day's close of $11.50. Houston Wire & Cable Company, through its subsidiaries, sells wire and cable, hardware, and related services in the United States. Houston Wire & Cable has a market cap of $204.6 million and is part of the services sector. Shares are down 14.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Houston Wire & Cable a buy, 1 analyst rates it a sell, and 2 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 Houston Wire & Cable as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from TheStreet Ratings analysis on HWCC go as follows: