3 Stocks Pushing The Industrial Goods 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 Industrial Goods sector as a whole closed the day up 0.5% versus the S&P 500, which was down 0.1%. Laggards within the Industrial Goods sector included Global-Tech Advanced Innovations ( GAI), down 3.9%, Asia Pacific Wire & Cable ( APWC), down 5.1%, Skyline ( SKY), down 9.2%, Guanwei Recycling ( GPRC), down 2.5% and China Ceramics ( CCCL), down 2.6%.

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

Nuverra Environmental Solutions ( NES) is one of the companies that pushed the Industrial Goods sector lower today. Nuverra Environmental Solutions was down $0.24 (1.8%) to $13.26 on light volume. Throughout the day, 205,915 shares of Nuverra Environmental Solutions exchanged hands as compared to its average daily volume of 354,000 shares. The stock ranged in price between $13.14-$13.50 after having opened the day at $13.45 as compared to the previous trading day's close of $13.50.

Nuverra Environmental Solutions, Inc. provides full-cycle environmental solutions to customers focused on the development and ongoing production of oil and natural gas from shale formations in the United States. Nuverra Environmental Solutions has a market cap of $360.9 million and is part of the materials & construction industry. Shares are down 19.6% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who rate Nuverra Environmental Solutions a buy, no analysts rate it a sell, and 5 rate it a hold.

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TheStreet Ratings rates Nuverra Environmental Solutions as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on NES go as follows:

  • 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 Energy Equipment & Services industry. The net income has significantly decreased by 81.1% when compared to the same quarter one year ago, falling from -$12.85 million to -$23.27 million.
  • 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 Energy Equipment & Services industry and the overall market, NUVERRA ENVIRONMENTAL SOLUTN's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NUVERRA ENVIRONMENTAL SOLUTN is currently lower than what is desirable, coming in at 26.88%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -18.34% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$4.04 million or 122.53% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Looking at the price performance of NES's shares over the past 12 months, there is not much good news to report: the stock is down 39.78%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

You can view the full analysis from the report here: Nuverra Environmental Solutions 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, China Ceramics ( CCCL) was down $0.03 (2.6%) to $1.12 on average volume. Throughout the day, 69,606 shares of China Ceramics exchanged hands as compared to its average daily volume of 64,000 shares. The stock ranged in price between $1.01-$1.18 after having opened the day at $1.15 as compared to the previous trading day's close of $1.15.

China Ceramics has a market cap of $23.5 million and is part of the materials & construction industry. Shares are down 52.9% year-to-date as of the close of trading on Friday.

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

Guanwei Recycling ( GPRC) was another company that pushed the Industrial Goods sector lower today. Guanwei Recycling was down $0.02 (2.5%) to $0.78 on light volume. Throughout the day, 35,682 shares of Guanwei Recycling exchanged hands as compared to its average daily volume of 74,900 shares. The stock ranged in price between $0.78-$0.81 after having opened the day at $0.80 as compared to the previous trading day's close of $0.80.

Guanwei Recycling Corp. manufactures and distributes low density polyethylene (LDPE) and other recycled plastics products primarily in the People's Republic of China and internationally. Guanwei Recycling has a market cap of $8.3 million and is part of the materials & construction industry. Shares are down 72.2% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Guanwei Recycling as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

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

Highlights from TheStreet Ratings analysis on GPRC go as follows:

  • GUANWEI RECYCLING CORP 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. During the past fiscal year, GUANWEI RECYCLING CORP reported lower earnings of $0.93 versus $1.13 in the prior year.
  • 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 Commercial Services & Supplies industry. The net income has significantly decreased by 68.0% when compared to the same quarter one year ago, falling from $2.37 million to $0.76 million.
  • 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. When compared to other companies in the Commercial Services & Supplies industry and the overall market, GUANWEI RECYCLING CORP's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for GUANWEI RECYCLING CORP is rather low; currently it is at 16.86%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 6.41% significantly trails the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 69.56% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

You can view the full analysis from the report here: Guanwei Recycling 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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