3 Stocks Improving Performance Of The Industrial Goods Sector

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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 61.49 points (-0.4%) at 16,988 as of Friday, Sept. 12, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 638 issues advancing vs. 2,470 declining with 106 unchanged.

The Industrial Goods sector as a whole closed the day down 0.7% versus the S&P 500, which was down 0.6%. Top gainers within the Industrial Goods sector included Servotronics ( SVT), up 3.4%, Guanwei Recycling ( GPRC), up 14.9%, Taylor Devices ( TAYD), up 2.0%, China Ceramics ( CCCL), up 3.5% and Industrial Services of America ( IDSA), up 2.3%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today:

Industrial Services of America ( IDSA) is one of the companies that pushed the Industrial Goods sector higher today. Industrial Services of America was up $0.14 (2.3%) to $6.22 on light volume. Throughout the day, 9,334 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 14,700 shares. The stock ranged in a price between $6.05-$6.22 after having opened the day at $6.07 as compared to the previous trading day's close of $6.08.

Industrial Services of America, Inc. operates as a recycler of stainless steel, ferrous, and non-ferrous scrap. The company operates in two segments, Recycling and Waste Services. Industrial Services of America has a market cap of $49.0 million and is part of the materials & construction industry. Shares are up 91.8% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Industrial Services of America a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Industrial Services of America 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 and poor profit margins.

Highlights from TheStreet Ratings analysis on IDSA go as follows:

  • INDUSTRIAL SERVICES AMER 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 reported a trend of declining earnings per share over the past two years. During the past fiscal year, INDUSTRIAL SERVICES AMER INC reported poor results of -$1.96 versus -$0.96 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 460.9% when compared to the same quarter one year ago, falling from -$0.12 million to -$0.65 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 Commercial Services & Supplies industry and the overall market, INDUSTRIAL SERVICES AMER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INDUSTRIAL SERVICES AMER INC is currently extremely low, coming in at 6.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.51% is significantly below that of the industry average.
  • The revenue fell significantly faster than the industry average of 4.1%. Since the same quarter one year prior, revenues fell by 26.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Industrial Services of America Ratings Report

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At the close, China Ceramics ( CCCL) was up $0.04 (3.5%) to $1.16 on average volume. Throughout the day, 86,440 shares of China Ceramics exchanged hands as compared to its average daily volume of 71,500 shares. The stock ranged in a price between $1.10-$1.21 after having opened the day at $1.13 as compared to the previous trading day's close of $1.12.

China Ceramics has a market cap of $22.3 million and is part of the materials & construction industry. Shares are down 55.3% year-to-date as of the close of trading on Thursday.

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Guanwei Recycling ( GPRC) was another company that pushed the Industrial Goods sector higher today. Guanwei Recycling was up $0.10 (14.9%) to $0.77 on light volume. Throughout the day, 39,518 shares of Guanwei Recycling exchanged hands as compared to its average daily volume of 75,500 shares. The stock ranged in a price between $0.68-$0.78 after having opened the day at $0.68 as compared to the previous trading day's close of $0.67.

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 $8.4 million and is part of the materials & construction industry. Shares are down 76.7% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Guanwei Recycling a buy, no analysts rate it a sell, and none rate it a hold.

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.

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 52.29%, 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.

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.

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