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 0.2%. 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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At the close, Altair Nanotechnologies ( ALTI) was down $0.06 (1.8%) to $3.21 on average volume. Throughout the day, 20,517 shares of Altair Nanotechnologies exchanged hands as compared to its average daily volume of 20,100 shares. The stock ranged in price between $3.18-$3.41 after having opened the day at $3.25 as compared to the previous trading day's close of $3.27.

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 $37.9 million and is part of the industrial goods sector. Shares are down 16.6% year-to-date as of the close of trading on Monday.

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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 2.28%.
  • Investors have driven up the company's shares by 51.38% 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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THT Heat Transfer Technology ( THTI) was another company that pushed the Industrial industry lower today. THT Heat Transfer Technology was down $0.04 (3.3%) to $1.24 on light volume. Throughout the day, 10,020 shares of THT Heat Transfer Technology exchanged hands as compared to its average daily volume of 43,600 shares. The stock ranged in price between $1.24-$1.31 after having opened the day at $1.28 as compared to the previous trading day's close of $1.28.

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 $26.4 million and is part of the industrial goods sector. Shares are up 36.5% year-to-date as of the close of trading on Monday.

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.

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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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 53.2% when compared to the same quarter one year prior, rising from $0.31 million to $0.48 million.
  • Compared to its closing price of one year ago, THTI's share price has jumped by 39.13%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in THTI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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