3 Stocks Pushing The Industrial Goods Sector Lower

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The Industrial Goods sector as a whole closed the day up 0.4% versus the S&P 500, which was up 0.3%. Laggards within the Industrial Goods sector included Intelligent Systems ( INS), down 2.8%, Art's-Way Manufacturing ( ARTW), down 1.9%, China Ceramics ( CCCL), down 2.9%, Perma-Fix Environmental Services ( PESI), down 2.5% and Comstock ( CHCI), down 1.7%.

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

Perma-Fix Environmental Services ( PESI) is one of the companies that pushed the Industrial Goods sector lower today. Perma-Fix Environmental Services was down $0.10 (2.5%) to $3.91 on heavy volume. Throughout the day, 49,963 shares of Perma-Fix Environmental Services exchanged hands as compared to its average daily volume of 12,400 shares. The stock ranged in price between $3.82-$3.92 after having opened the day at $3.92 as compared to the previous trading day's close of $4.01.

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates through two segments, Treatment and Services. Perma-Fix Environmental Services has a market cap of $48.1 million and is part of the automotive industry. Shares are up 35.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Perma-Fix Environmental Services a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Perma-Fix Environmental Services as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on PESI go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, PERMA-FIX ENVIRONMENTAL SVCS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PERMA-FIX ENVIRONMENTAL SVCS is currently extremely low, coming in at 12.29%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 0.08% significantly trails the industry average.
  • PERMA-FIX ENVIRONMENTAL SVCS 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, PERMA-FIX ENVIRONMENTAL SVCS reported poor results of -$3.03 versus -$0.30 in the prior year. This year, the market expects an improvement in earnings (-$0.46 versus -$3.03).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Services & Supplies industry average, but is greater than that of the S&P 500. The net income increased by 101.3% when compared to the same quarter one year prior, rising from -$0.88 million to $0.01 million.
  • The revenue fell significantly faster than the industry average of 4.2%. Since the same quarter one year prior, revenues fell by 44.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Perma-Fix Environmental Services Ratings Report

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At the close, China Ceramics ( CCCL) was down $0.03 (2.9%) to $1.01 on heavy volume. Throughout the day, 175,032 shares of China Ceramics exchanged hands as compared to its average daily volume of 43,600 shares. The stock ranged in price between $0.98-$1.09 after having opened the day at $1.02 as compared to the previous trading day's close of $1.04.

China Ceramics has a market cap of $21.8 million and is part of the automotive industry. Shares are down 57.4% year-to-date as of the close of trading on Wednesday.

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Art's-Way Manufacturing ( ARTW) was another company that pushed the Industrial Goods sector lower today. Art's-Way Manufacturing was down $0.10 (1.9%) to $5.31 on light volume. Throughout the day, 2,765 shares of Art's-Way Manufacturing exchanged hands as compared to its average daily volume of 6,800 shares. The stock ranged in price between $5.26-$5.57 after having opened the day at $5.40 as compared to the previous trading day's close of $5.41.

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, pressurized steel vessels, and steel cutting tools in the United States and internationally. Art's-Way Manufacturing has a market cap of $21.3 million and is part of the automotive industry. Shares are down 13.6% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Art's-Way Manufacturing as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

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Highlights from TheStreet Ratings analysis on ARTW go as follows:

  • ARTW's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues slightly increased by 2.4%. 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.
  • Net operating cash flow has significantly increased by 53.67% to -$0.62 million when compared to the same quarter last year. In addition, ARTS WAY MFG INC has also vastly surpassed the industry average cash flow growth rate of -23.96%.
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.43 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • ARTS WAY MFG INC 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, ARTS WAY MFG INC reported lower earnings of $0.38 versus $0.66 in the prior year. For the next year, the market is expecting a contraction of 55.3% in earnings ($0.17 versus $0.38).
  • 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 Machinery industry. The net income has significantly decreased by 50.9% when compared to the same quarter one year ago, falling from $0.52 million to $0.25 million.

You can view the full analysis from the report here: Art's-Way Manufacturing Ratings Report

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