3 Stocks Pushing The Materials & Construction Industry 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 Materials & Construction industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.3%. Laggards within the Materials & Construction industry included Avalon Holdings ( AWX), down 7.1%, Industrial Services of America ( IDSA), down 2.4%, Comstock ( CHCI), down 3.9%, TRC Companies ( TRR), down 2.3% and Abengoa ( ABGB), down 2.8%.

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

TRC Companies ( TRR) is one of the companies that pushed the Materials & Construction industry lower today. TRC Companies was down $0.12 (2.3%) to $5.19 on average volume. Throughout the day, 35,541 shares of TRC Companies exchanged hands as compared to its average daily volume of 30,600 shares. The stock ranged in price between $5.18-$5.38 after having opened the day at $5.38 as compared to the previous trading day's close of $5.31.

TRC Companies, Inc. provides engineering, consulting, and construction management services in the United States. TRC Companies has a market cap of $158.1 million and is part of the industrial goods sector. Shares are down 25.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates TRC Companies 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 notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on TRR go as follows:

  • TRR's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues rose by 10.0%. 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.
  • TRR's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
  • 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 53.9% when compared to the same quarter one year ago, falling from $3.10 million to $1.43 million.
  • The gross profit margin for TRC COS INC is currently extremely low, coming in at 6.58%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.18% trails that of the industry average.

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

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At the close, Comstock ( CHCI) was down $0.05 (3.9%) to $1.25 on light volume. Throughout the day, 25,394 shares of Comstock exchanged hands as compared to its average daily volume of 87,700 shares. The stock ranged in price between $1.25-$1.30 after having opened the day at $1.29 as compared to the previous trading day's close of $1.30.

Comstock Holding Companies, Inc. operates as a real estate development and construction services company in the United States. The company operates through three segments: Homebuilding, Multi-family, and Real Estate Services. Comstock has a market cap of $24.2 million and is part of the industrial goods sector. Shares are down 35.0% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Comstock as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on CHCI go as follows:

  • The debt-to-equity ratio is very high at 7.20 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • CHCI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 48.60%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • The gross profit margin for COMSTOCK HOLDING COS INC is rather low; currently it is at 22.19%. Regardless of CHCI'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 -5.52% trails the industry average.
  • 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 Household Durables industry and the overall market, COMSTOCK HOLDING COS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 115.10% to $1.65 million when compared to the same quarter last year. Despite an increase in cash flow, COMSTOCK HOLDING COS INC's cash flow growth rate is still lower than the industry average growth rate of 151.78%.

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

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Industrial Services of America ( IDSA) was another company that pushed the Materials & Construction industry lower today. Industrial Services of America was down $0.12 (2.4%) to $4.78 on light volume. Throughout the day, 3,188 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 10,000 shares. The stock ranged in price between $4.78-$4.89 after having opened the day at $4.80 as compared to the previous trading day's close of $4.90.

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 industrial goods sector. Shares are up 54.6% year-to-date as of the close of trading on Tuesday.

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 460.9% when compared to the same quarter one year ago, falling from -$0.12 million to -$0.65 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 6.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.51% trails 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 26.1%. 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: 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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