3 Stocks Pushing The Industrial Industry Lower

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The Industrial industry as a whole closed the day down 0.7% versus the S&P 500, which was down 0.1%. Laggards within the Industrial industry included Intelligent Systems ( INS), down 4.2%, Art's-Way Manufacturing ( ARTW), down 4.4%, Continental Materials ( CUO), down 4.4%, Tecumseh Products ( TECUB), down 2.9% and THT Heat Transfer Technology ( THTI), down 2.1%.

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

Interface ( TILE) is one of the companies that pushed the Industrial industry lower today. Interface was down $0.39 (2.2%) to $17.11 on light volume. Throughout the day, 159,377 shares of Interface exchanged hands as compared to its average daily volume of 282,800 shares. The stock ranged in price between $17.07-$17.63 after having opened the day at $17.56 as compared to the previous trading day's close of $17.50.

Interface, Inc. designs, produces, and sells modular carpet products for the commercial, institutional, and residential markets primarily in the Americas, Europe, and the Asia-Pacific. Interface has a market cap of $1.1 billion and is part of the industrial goods sector. Shares are down 20.3% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate Interface a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates Interface as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on TILE go as follows:

  • TILE's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
  • INTERFACE INC has improved earnings per share by 17.6% 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. During the past fiscal year, INTERFACE INC increased its bottom line by earning $0.74 versus $0.34 in the prior year. This year, the market expects an improvement in earnings ($0.78 versus $0.74).
  • Net operating cash flow has significantly increased by 8725.64% to $3.36 million when compared to the same quarter last year. In addition, INTERFACE INC has also vastly surpassed the industry average cash flow growth rate of -5.50%.

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

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At the close, THT Heat Transfer Technology ( THTI) was down $0.03 (2.1%) to $1.38 on light volume. Throughout the day, 23,517 shares of THT Heat Transfer Technology exchanged hands as compared to its average daily volume of 53,600 shares. The stock ranged in price between $1.38-$1.41 after having opened the day at $1.41 as compared to the previous trading day's close of $1.41.

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 $30.5 million and is part of the industrial goods sector. Shares are up 50.2% year-to-date as of the close of trading on Tuesday.

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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 36.89%, 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

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Art's-Way Manufacturing ( ARTW) was another company that pushed the Industrial industry lower today. Art's-Way Manufacturing was down $0.24 (4.4%) to $5.23 on light volume. Throughout the day, 2,775 shares of Art's-Way Manufacturing exchanged hands as compared to its average daily volume of 6,700 shares. The stock ranged in price between $5.20-$5.52 after having opened the day at $5.52 as compared to the previous trading day's close of $5.47.

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 $21.6 million and is part of the industrial goods sector. Shares are down 10.2% year-to-date as of the close of trading on Tuesday.

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 3.3%. 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 -23.65%.
  • 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. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, ARTS WAY MFG INC reported lower earnings of $0.38 versus $0.66 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 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

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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