3 Stocks Pushing The Basic Materials Sector 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 Basic Materials sector as a whole closed the day down 0.2% versus the S&P 500, which was down 0.2%. Laggards within the Basic Materials sector included Timberline Resources ( TLR), down 16.0%, Pacific Booker Minerals ( PBM), down 2.1%, Entree Gold ( EGI), down 2.5%, Ossen Innovation ( OSN), down 3.3% and Lilis Energy ( LLEX), down 1.5%.

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

Ossen Innovation ( OSN) is one of the companies that pushed the Basic Materials sector lower today. Ossen Innovation was down $0.03 (3.3%) to $0.80 on average volume. Throughout the day, 26,038 shares of Ossen Innovation exchanged hands as compared to its average daily volume of 25,000 shares. The stock ranged in price between $0.80-$0.84 after having opened the day at $0.83 as compared to the previous trading day's close of $0.83.

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 $16.5 million and is part of the energy industry. Shares are down 30.5% year-to-date as of the close of trading on Thursday.

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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 3.2%. 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 40.62% 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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At the close, Entree Gold ( EGI) was down $0.01 (2.5%) to $0.27 on average volume. Throughout the day, 50,522 shares of Entree Gold exchanged hands as compared to its average daily volume of 67,300 shares. The stock ranged in price between $0.26-$0.28 after having opened the day at $0.28 as compared to the previous trading day's close of $0.28.

Entree Gold has a market cap of $39.7 million and is part of the energy industry. Shares are down 3.6% year-to-date as of the close of trading on Thursday.

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Timberline Resources ( TLR) was another company that pushed the Basic Materials sector lower today. Timberline Resources was down $0.02 (16.0%) to $0.10 on heavy volume. Throughout the day, 190,453 shares of Timberline Resources exchanged hands as compared to its average daily volume of 114,600 shares. The stock ranged in price between $0.10-$0.12 after having opened the day at $0.12 as compared to the previous trading day's close of $0.12.

Timberline Resources has a market cap of $8.9 million and is part of the energy industry. Shares are down 32.1% year-to-date as of the close of trading on Thursday.

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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