3 Stocks Pushing The Industrial 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 Industrial industry as a whole was unchanged today versus the S&P 500, which was up 0.1%. Laggards within the Industrial industry included Continental Materials ( CUO), down 4.6%, Euro Tech Holdings ( CLWT), down 5.5%, Ultralife Batteries ( ULBI), down 2.8%, THT Heat Transfer Technology ( THTI), down 2.5% and Altair Nanotechnologies ( ALTI), down 2.3%.

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

Altair Nanotechnologies ( ALTI) is one of the companies that pushed the Industrial industry lower today. Altair Nanotechnologies was down $0.09 (2.3%) to $3.75 on heavy volume. Throughout the day, 50,986 shares of Altair Nanotechnologies exchanged hands as compared to its average daily volume of 27,600 shares. The stock ranged in price between $3.60-$4.10 after having opened the day at $3.92 as compared to the previous trading day's close of $3.84.

Altair Nanotechnologies Inc. develops, manufactures, and sells nano lithium titanate batteries and energy storage systems primarily in the United States and China. Altair Nanotechnologies has a market cap of $39.9 million and is part of the industrial goods sector. Shares are down 12.2% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Altair Nanotechnologies as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from TheStreet Ratings analysis on ALTI go as follows:

  • 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, ALTAIR NANOTECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.93 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has increased to -$3.15 million or 36.28% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.12%.
  • The stock has risen over the past year and, it has performed in line with the S&P 500 thus far. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • ALTAIR NANOTECHNOLOGIES INC has improved earnings per share by 23.8% 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 two years. During the past fiscal year, ALTAIR NANOTECHNOLOGIES INC continued to lose money by earning -$1.57 versus -$2.94 in the prior year.

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

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At the close, THT Heat Transfer Technology ( THTI) was down $0.03 (2.5%) to $1.17 on light volume. Throughout the day, 2,355 shares of THT Heat Transfer Technology exchanged hands as compared to its average daily volume of 82,600 shares. The stock ranged in price between $1.17-$1.18 after having opened the day at $1.18 as compared to the previous trading day's close of $1.20.

THT Heat Transfer Technology, Inc., through its subsidiaries, manufactures and trades in plate heat exchangers and various related products in the People's Republic of China. THT Heat Transfer Technology has a market cap of $24.4 million and is part of the industrial goods sector. Shares are up 27.8% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates THT Heat Transfer Technology as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from TheStreet Ratings analysis on THTI go as follows:

  • The gross profit margin for THT HEAT TRANSFER TECH INC is currently lower than what is desirable, coming in at 33.56%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.80% trails that of the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Machinery industry and the overall market, THT HEAT TRANSFER TECH INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • THT HEAT TRANSFER TECH INC reported flat earnings per share in the most recent quarter. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, THT HEAT TRANSFER TECH INC's EPS of $0.15 remained unchanged from the prior years' EPS of $0.15.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • THTI's debt-to-equity ratio is very low at 0.23 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 1.13, which illustrates the ability to avoid short-term cash problems.

You can view the full analysis from the report here: THT Heat Transfer Technology Ratings Report

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Ultralife Batteries ( ULBI) was another company that pushed the Industrial industry lower today. Ultralife Batteries was down $0.11 (2.8%) to $3.83 on light volume. Throughout the day, 2,028 shares of Ultralife Batteries exchanged hands as compared to its average daily volume of 15,800 shares. The stock ranged in price between $3.78-$3.87 after having opened the day at $3.87 as compared to the previous trading day's close of $3.94.

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 $67.8 million and is part of the industrial goods sector. Shares are up 11.0% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Ultralife Batteries as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

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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 2.60, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 485.73% to $2.70 million when compared to the same quarter last year. In addition, ULTRALIFE CORP has also vastly surpassed the industry average cash flow growth rate of -6.12%.
  • ULBI, with its decline in revenue, underperformed when compared the industry average of 6.1%. Since the same quarter one year prior, revenues fell by 27.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 32.72%. 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.

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