3 Industrial Stocks Moving The Industry Upward

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 89 points (0.5%) at 16,650 as of Wednesday, Aug. 13, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,238 issues advancing vs. 759 declining with 137 unchanged.

The Industrial industry as a whole closed the day up 0.4% versus the S&P 500, which was up 0.6%. Top gainers within the Industrial industry included Bonso Electronics International ( BNSO), up 2.1%, P & F Industries ( PFIN), up 1.6%, THT Heat Transfer Technology ( THTI), up 1.8%, Altair Nanotechnologies ( ALTI), up 3.1% and American Electric Technologies ( AETI), up 3.2%.

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

American Electric Technologies ( AETI) is one of the companies that pushed the Industrial industry higher today. American Electric Technologies was up $0.21 (3.2%) to $6.74 on average volume. Throughout the day, 14,806 shares of American Electric Technologies exchanged hands as compared to its average daily volume of 12,200 shares. The stock ranged in a price between $6.47-$6.84 after having opened the day at $6.57 as compared to the previous trading day's close of $6.53.

American Electric Technologies, Inc. provides power delivery solutions to the energy industry in the United States and internationally. American Electric Technologies has a market cap of $53.1 million and is part of the industrial goods sector. Shares are down 34.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate American Electric Technologies a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates American Electric Technologies as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on AETI go as follows:

  • The revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 20.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • AETI's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.34, which illustrates the ability to avoid short-term cash problems.
  • 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 66.6% when compared to the same quarter one year ago, falling from $1.74 million to $0.58 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. When compared to other companies in the Electrical Equipment industry and the overall market, AMERICAN ELECTRIC TECH INC's return on equity is below that of both the industry average and the S&P 500.

You can view the full analysis from the report here: American Electric Technologies 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.

At the close, Altair Nanotechnologies ( ALTI) was up $0.10 (3.1%) to $3.31 on light volume. Throughout the day, 2,826 shares of Altair Nanotechnologies exchanged hands as compared to its average daily volume of 21,000 shares. The stock ranged in a price between $3.21-$3.32 after having opened the day at $3.30 as compared to the previous trading day's close of $3.21.

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 18.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Altair Nanotechnologies a buy, no analysts rate it a sell, and none rate it a hold.

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

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

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

THT Heat Transfer Technology ( THTI) was another company that pushed the Industrial industry higher today. THT Heat Transfer Technology was up $0.02 (1.8%) to $1.26 on light volume. Throughout the day, 3,596 shares of THT Heat Transfer Technology exchanged hands as compared to its average daily volume of 42,300 shares. The stock ranged in a price between $1.24-$1.28 after having opened the day at $1.28 as compared to the previous trading day's close of $1.24.

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 $26.2 million and is part of the industrial goods sector. Shares are up 32.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate THT Heat Transfer Technology a buy, no analysts rate it a sell, and none rate it a hold.

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.

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.

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.

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