3 Stocks Raising The Basic Materials Sector Higher

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 88 points (0.5%) at 16,582 as of Monday, Aug. 4, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,528 issues advancing vs. 1,497 declining with 145 unchanged.

The Basic Materials sector as a whole closed the day up 1.0% versus the S&P 500, which was up 0.9%. Top gainers within the Basic Materials sector included Atlatsa Resources ( ATL), up 12.8%, Entree Gold ( EGI), up 2.8%, Ossen Innovation ( OSN), up 4.9%, Minco Gold ( MGH), up 2.6% and United States Antimony ( UAMY), up 4.6%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today:

Ossen Innovation ( OSN) is one of the companies that pushed the Basic Materials sector higher today. Ossen Innovation was up $0.05 (4.9%) to $0.98 on light volume. Throughout the day, 14,412 shares of Ossen Innovation exchanged hands as compared to its average daily volume of 23,600 shares. The stock ranged in a price between $0.95-$0.98 after having opened the day at $0.97 as compared to the previous trading day's close of $0.93.

Ossen Innovation Co., Ltd. manufactures and sells various plain surface prestressed steel materials, and rare earth coated and zinc coated prestressed steel materials in the People's Republic of China. Ossen Innovation has a market cap of $18.3 million and is part of the energy industry. Shares are down 21.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Ossen Innovation a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Ossen Innovation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on OSN go as follows:

  • OSN's very impressive revenue growth greatly exceeded the industry average of 0.2%. Since the same quarter one year prior, revenues leaped by 92.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • This stock has managed to rise its share value by 53.33% over the past twelve months. 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.
  • 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 Metals & Mining industry and the overall market on the basis of return on equity, OSSEN INNOVATION CO LTD -ADR has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for OSSEN INNOVATION CO LTD -ADR is currently extremely low, coming in at 10.81%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.71% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to -$1.13 million or 112.47% 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: Ossen Innovation Ratings Report

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