3 Stocks Pushing The Industrial Industry Lower

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The Industrial industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.2%. Laggards within the Industrial industry included P & F Industries ( PFIN), down 8.0%, THT Heat Transfer Technology ( THTI), down 3.3%, Altair Nanotechnologies ( ALTI), down 1.8%, Highway Holdings ( HIHO), down 2.1% and American DG Energy ( ADGE), down 3.2%.

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

Interface ( TILE) is one of the companies that pushed the Industrial industry lower today. Interface was down $0.29 (1.7%) to $17.01 on light volume. Throughout the day, 104,409 shares of Interface exchanged hands as compared to its average daily volume of 305,000 shares. The stock ranged in price between $16.88-$17.21 after having opened the day at $17.21 as compared to the previous trading day's close of $17.30.

Interface, Inc. designs, produces, and sells modular carpet products for the commercial, institutional, and residential markets primarily in the Americas, Europe, and the Asia-Pacific. Interface has a market cap of $1.1 billion and is part of the industrial goods sector. Shares are down 21.2% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Interface a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates Interface as a buy. 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, impressive record of earnings per share growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on TILE go as follows:

  • TILE's revenue growth has slightly outpaced the industry average of 5.1%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
  • INTERFACE INC has improved earnings per share by 17.6% 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. We feel that this trend should continue. During the past fiscal year, INTERFACE INC increased its bottom line by earning $0.74 versus $0.34 in the prior year. This year, the market expects an improvement in earnings ($0.78 versus $0.74).
  • Net operating cash flow has significantly increased by 8715.38% to $3.36 million when compared to the same quarter last year. In addition, INTERFACE INC has also vastly surpassed the industry average cash flow growth rate of -9.84%.

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

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