3 Chemicals Stocks Moving The Industry Upward

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 30 points (0.2%) at 17,107 as of Tuesday, Aug. 26, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,006 issues advancing vs. 1,020 declining with 179 unchanged.

The Chemicals industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.1%. Top gainers within the Chemicals industry included Metabolix ( MBLX), up 1.5%, Gevo ( GEVO), up 3.9%, Amyris ( AMRS), up 2.8%, Marrone Bio Innovations ( MBII), up 1.6% and Penford ( PENX), up 2.4%.

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

Amyris ( AMRS) is one of the companies that pushed the Chemicals industry higher today. Amyris was up $0.12 (2.8%) to $4.47 on average volume. Throughout the day, 254,822 shares of Amyris exchanged hands as compared to its average daily volume of 197,900 shares. The stock ranged in a price between $4.32-$4.50 after having opened the day at $4.35 as compared to the previous trading day's close of $4.35.

Amyris, Inc., a renewable products company, provides various alternatives to a range of petroleum-sourced products for the specialty chemical and transportation fuel markets worldwide. Amyris has a market cap of $348.1 million and is part of the basic materials sector. Shares are down 17.8% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Amyris a buy, no analysts rate it a sell, and 4 rate it a hold.

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TheStreet Ratings rates Amyris as a sell. The area that we feel has been the company's primary weakness has been its declining revenues.

Highlights from TheStreet Ratings analysis on AMRS go as follows:

  • AMRS, with its decline in revenue, underperformed when compared the industry average of 2.4%. Since the same quarter one year prior, revenues fell by 14.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 8.7% when compared to the same quarter one year prior, going from -$38.88 million to -$35.48 million.
  • The gross profit margin for AMYRIS INC is rather high; currently it is at 59.47%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -381.20% is in-line with the industry average.
  • Investors have driven up the company's shares by 76.20% 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 AMRS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • AMYRIS INC has improved earnings per share by 11.8% 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMYRIS INC continued to lose money by earning -$3.10 versus -$3.75 in the prior year. This year, the market expects an improvement in earnings (-$0.92 versus -$3.10).

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

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