3 Stocks Pushing The Industrial Industry Lower

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The Industrial industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.7%. Laggards within the Industrial industry included Bonso Electronics International ( BNSO), down 5.5%, Tecumseh Products ( TECUB), down 3.4%, Active Power ( ACPW), down 1.9%, Omega Flex ( OFLX), down 2.0% and Marine Products ( MPX), down 7.0%.

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

RTI International Metals ( RTI) is one of the companies that pushed the Industrial industry lower today. RTI International Metals was down $0.57 (2.0%) to $27.66 on average volume. Throughout the day, 134,355 shares of RTI International Metals exchanged hands as compared to its average daily volume of 169,300 shares. The stock ranged in price between $27.47-$28.12 after having opened the day at $28.12 as compared to the previous trading day's close of $28.23.

RTI International Metals, Inc. produces and supplies titanium mill products; and manufactures fabricated titanium and specialty metal components worldwide. The company operates through two segments, Titanium, and Engineered Products and Services. RTI International Metals has a market cap of $874.5 million and is part of the industrial goods sector. Shares are down 17.5% year-to-date as of the close of trading on Monday. Currently there are 4 analysts who rate RTI International Metals a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates RTI International Metals as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on RTI go as follows:

  • RTI's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 3.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • RTI INTL METALS INC reported significant earnings per share improvement 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, RTI INTL METALS INC increased its bottom line by earning $0.47 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.47).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 950.9% when compared to the same quarter one year prior, rising from $0.67 million to $7.04 million.
  • Despite currently having a low debt-to-equity ratio of 0.57, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.87 is very high and demonstrates very strong liquidity.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, RTI INTL METALS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

You can view the full analysis from the report here: RTI International Metals Ratings Report

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