3 Stocks Pushing The Industrial Goods Sector Lower

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The Industrial Goods sector as a whole closed the day up 0.1% versus the S&P 500, which was up 0.4%. Laggards within the Industrial Goods sector included Global-Tech Advanced Innovations ( GAI), down 3.2%, Avalon Holdings ( AWX), down 12.9%, Art's-Way Manufacturing ( ARTW), down 2.7%, Tecumseh Products ( TECUB), down 8.2% and Perma-Fix Environmental Services ( PESI), down 3.2%.

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

PGT ( PGTI) is one of the companies that pushed the Industrial Goods sector lower today. PGT was down $0.31 (3.0%) to $10.18 on average volume. Throughout the day, 590,040 shares of PGT exchanged hands as compared to its average daily volume of 512,400 shares. The stock ranged in price between $10.09-$10.64 after having opened the day at $10.52 as compared to the previous trading day's close of $10.49.

PGT, Inc. manufactures and supplies residential impact-resistant windows and doors. The company offers window and door products, including heavy-duty aluminum or vinyl frames with laminated glass to provide protection from hurricane-force winds and wind-borne debris. PGT has a market cap of $512.7 million and is part of the materials & construction industry. Shares are up 3.7% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate PGT a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates PGT as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on PGTI go as follows:

  • The revenue growth greatly exceeded the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 29.9%. 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.
  • Even though the current debt-to-equity ratio is 1.15, it is still below the industry average, suggesting that this level of debt is acceptable within the Building Products industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.62 is very high and demonstrates very strong liquidity.
  • 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 Building Products industry and the overall market, PGT INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • PGT INC's earnings per share declined by 15.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PGT INC increased its bottom line by earning $0.52 versus $0.17 in the prior year. For the next year, the market is expecting a contraction of 11.5% in earnings ($0.46 versus $0.52).
  • In its most recent trading session, PGTI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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

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At the close, Perma-Fix Environmental Services ( PESI) was down $0.12 (3.2%) to $3.66 on average volume. Throughout the day, 20,431 shares of Perma-Fix Environmental Services exchanged hands as compared to its average daily volume of 14,500 shares. The stock ranged in price between $3.65-$3.86 after having opened the day at $3.73 as compared to the previous trading day's close of $3.78.

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates through two segments, Treatment and Services. Perma-Fix Environmental Services has a market cap of $43.4 million and is part of the materials & construction industry. Shares are up 21.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Perma-Fix Environmental Services a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Perma-Fix Environmental Services as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on PESI go as follows:

  • 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 Commercial Services & Supplies industry and the overall market, PERMA-FIX ENVIRONMENTAL SVCS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PERMA-FIX ENVIRONMENTAL SVCS is rather low; currently it is at 19.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.08% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to -$4.38 million or 187.13% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • PERMA-FIX ENVIRONMENTAL SVCS 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. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, PERMA-FIX ENVIRONMENTAL SVCS reported poor results of -$3.03 versus -$0.30 in the prior year. This year, the market expects an improvement in earnings (-$0.46 versus -$3.03).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Services & Supplies industry average, but is greater than that of the S&P 500. The net income increased by 101.3% when compared to the same quarter one year prior, rising from -$0.88 million to $0.01 million.

You can view the full analysis from the report here: Perma-Fix Environmental Services 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.

Art's-Way Manufacturing ( ARTW) was another company that pushed the Industrial Goods sector lower today. Art's-Way Manufacturing was down $0.14 (2.7%) to $5.01 on average volume. Throughout the day, 9,787 shares of Art's-Way Manufacturing exchanged hands as compared to its average daily volume of 7,300 shares. The stock ranged in price between $5.00-$5.25 after having opened the day at $5.13 as compared to the previous trading day's close of $5.15.

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 $21.2 million and is part of the materials & construction industry. Shares are down 14.2% 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 3.4%. 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 -24.04%.
  • 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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