3 Stocks Pushing The Wholesale Industry Lower

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The Wholesale industry as a whole closed the day down 0.8% versus the S&P 500, which was down 0.7%. Laggards within the Wholesale industry included Armco Metals Holdings ( AMCO), down 2.6%, Houston Wire & Cable ( HWCC), down 2.0%, PC Connection ( PCCC), down 2.3%, Commercial Vehicle Group ( CVGI), down 1.9% and Rada Electronics Industries ( RADA), down 31.3%.

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

Commercial Vehicle Group ( CVGI) is one of the companies that pushed the Wholesale industry lower today. Commercial Vehicle Group was down $0.15 (1.9%) to $7.72 on light volume. Throughout the day, 101,254 shares of Commercial Vehicle Group exchanged hands as compared to its average daily volume of 144,000 shares. The stock ranged in price between $7.71-$8.24 after having opened the day at $7.84 as compared to the previous trading day's close of $7.87.

Commercial Vehicle Group, Inc., together with its subsidiaries, manufactures and supplies various cab related products and systems for the commercial vehicle markets in North America, Europe, China, India, and the Asia/Pacific regions. Commercial Vehicle Group has a market cap of $227.7 million and is part of the industrial goods sector. Shares are up 8.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Commercial Vehicle Group a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Commercial Vehicle Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

Highlights from TheStreet Ratings analysis on CVGI go as follows:

  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 8.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 264.7% when compared to the same quarter one year prior, rising from -$1.66 million to $2.74 million.
  • COMMERCIAL VEHICLE GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COMMERCIAL VEHICLE GROUP INC swung to a loss, reporting -$0.43 versus $1.75 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.43).
  • 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 Machinery industry and the overall market, COMMERCIAL VEHICLE GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $1.97 million or 72.92% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Commercial Vehicle Group Ratings Report

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