3 Stocks Pushing The Materials & Construction Industry Lower

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The Materials & Construction industry as a whole closed the day down 1.8% versus the S&P 500, which was down 1.1%. Laggards within the Materials & Construction industry included Avalon Holdings ( AWX), down 7.6%, Comstock ( CHCI), down 1.8%, Industrial Services of America ( IDSA), down 5.1%, Integrated Electrical Services ( IESC), down 3.5% and Skyline ( SKY), down 1.9%.

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

Integrated Electrical Services ( IESC) is one of the companies that pushed the Materials & Construction industry lower today. Integrated Electrical Services was down $0.24 (3.5%) to $6.54 on average volume. Throughout the day, 10,078 shares of Integrated Electrical Services exchanged hands as compared to its average daily volume of 8,800 shares. The stock ranged in price between $6.51-$6.63 after having opened the day at $6.63 as compared to the previous trading day's close of $6.78.

Integrated Electrical Services, Inc., through its subsidiaries, provides communications, residential, commercial and industrial, and infrastructure solutions in the United States. Integrated Electrical Services has a market cap of $124.7 million and is part of the industrial goods sector. Shares are up 29.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Integrated Electrical Services as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on IESC go as follows:

  • Powered by its strong earnings growth of 133.33% and other important driving factors, this stock has surged by 34.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • INTEGRATED ELECTRICAL SVCS reported significant earnings per share improvement 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, INTEGRATED ELECTRICAL SVCS continued to lose money by earning -$0.14 versus -$0.18 in the prior year.
  • Despite the weak revenue results, IESC has outperformed against the industry average of 13.3%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 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. Compared to other companies in the Construction & Engineering industry and the overall market, INTEGRATED ELECTRICAL SVCS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INTEGRATED ELECTRICAL SVCS is rather low; currently it is at 17.19%. Regardless of IESC'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 0.32% trails the industry average.

You can view the full analysis from the report here: Integrated Electrical Services Ratings Report

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At the close, Industrial Services of America ( IDSA) was down $0.29 (5.1%) to $5.41 on average volume. Throughout the day, 7,372 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 9,100 shares. The stock ranged in price between $5.40-$5.68 after having opened the day at $5.68 as compared to the previous trading day's close of $5.70.

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 $40.7 million and is part of the industrial goods sector. Shares are up 81.7% year-to-date as of the close of trading on Wednesday.

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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.

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.
  • The revenue fell significantly faster than the industry average of 4.4%. 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

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Comstock ( CHCI) was another company that pushed the Materials & Construction industry lower today. Comstock was down $0.02 (1.8%) to $1.12 on heavy volume. Throughout the day, 68,893 shares of Comstock exchanged hands as compared to its average daily volume of 43,400 shares. The stock ranged in price between $1.11-$1.19 after having opened the day at $1.14 as compared to the previous trading day's close of $1.14.

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 $21.2 million and is part of the industrial goods sector. Shares are down 43.5% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Comstock as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on CHCI go as follows:

  • 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 Household Durables industry. The net income has significantly decreased by 318.4% when compared to the same quarter one year ago, falling from $0.72 million to -$1.58 million.
  • The debt-to-equity ratio is very high at 10.87 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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 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.
  • The gross profit margin for COMSTOCK HOLDING COS INC is rather low; currently it is at 20.18%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -19.85% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$2.59 million or 163.52% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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

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