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 closed the day down 0.5% versus the S&P 500, which was down 0.6%. Laggards within the Industrial industry included Lime Energy ( LIME), down 1.7%, Ultralife Batteries ( ULBI), down 3.0%, Altair Nanotechnologies ( ALTI), down 2.0%, Chicago Rivet & Machine ( CVR), down 1.9% and LiqTech International ( LIQT), down 3.4%.

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 $0.07 (2.0%) to $3.40 on light volume. Throughout the day, 5,151 shares of Altair Nanotechnologies exchanged hands as compared to its average daily volume of 21,900 shares. The stock ranged in price between $3.40-$3.53 after having opened the day at $3.53 as compared to the previous trading day's close of $3.47.

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 $38.3 million and is part of the industrial goods sector. Shares are down 11.4% year-to-date as of the close of trading on Thursday.

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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 -5.91%.
  • Investors have driven up the company's shares by 41.70% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in ALTI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • 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, Ultralife Batteries ( ULBI) was down $0.11 (3.0%) to $3.50 on average volume. Throughout the day, 8,215 shares of Ultralife Batteries exchanged hands as compared to its average daily volume of 9,000 shares. The stock ranged in price between $3.50-$3.66 after having opened the day at $3.66 as compared to the previous trading day's close of $3.61.

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 $64.5 million and is part of the industrial goods sector. Shares are up 1.7% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Ultralife Batteries as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on ULBI 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 Electrical Equipment industry. The net income has significantly decreased by 396.3% when compared to the same quarter one year ago, falling from $0.43 million to -$1.29 million.
  • 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.
  • In its most recent trading session, ULBI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ULTRALIFE CORP 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. 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, ULTRALIFE CORP's EPS of -$0.05 remained unchanged from the prior years' EPS of -$0.05.

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.

Lime Energy ( LIME) was another company that pushed the Industrial industry lower today. Lime Energy was down $0.04 (1.7%) to $2.26 on light volume. Throughout the day, 5,864 shares of Lime Energy exchanged hands as compared to its average daily volume of 9,800 shares. The stock ranged in price between $2.23-$2.30 after having opened the day at $2.24 as compared to the previous trading day's close of $2.30.

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 $8.4 million and is part of the industrial goods sector. Shares are down 22.1% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates Lime Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on LIME go as follows:

  • Net operating cash flow has significantly decreased to -$6.94 million or 339.08% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for LIME ENERGY CO is currently lower than what is desirable, coming in at 31.90%. 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 -9.51% significantly underperformed when compared to the industry average.
  • LIME'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 63.66%, 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 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 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.
  • 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 0.63, 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.

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