3 Stocks Pushing The Basic Materials Sector Lower

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The Basic Materials sector as a whole closed the day down 1.1% versus the S&P 500, which was down 0.6%. Laggards within the Basic Materials sector included Minco Gold ( MGH), down 2.5%, Oxford Resource Partners ( OXF), down 6.9%, Solitario Exploration & Royalty ( XPL), down 5.0%, Tengasco ( TGC), down 8.3% and Sutor Technology Group ( SUTR), down 3.5%.

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

Sutor Technology Group ( SUTR) is one of the companies that pushed the Basic Materials sector lower today. Sutor Technology Group was down $0.03 (3.5%) to $0.80 on average volume. Throughout the day, 47,557 shares of Sutor Technology Group exchanged hands as compared to its average daily volume of 59,400 shares. The stock ranged in price between $0.80-$0.83 after having opened the day at $0.81 as compared to the previous trading day's close of $0.83.

Sutor Technology Group Limited, through its subsidiaries, manufactures and sells finished steel products in the People's Republic of China. Sutor Technology Group has a market cap of $33.3 million and is part of the energy industry. Shares are down 54.7% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Sutor Technology Group as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on SUTR go as follows:

  • Net operating cash flow has significantly increased by 196.77% to $16.29 million when compared to the same quarter last year. In addition, SUTOR TECHNOLOGY GROUP LTD has also vastly surpassed the industry average cash flow growth rate of -21.40%.
  • 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. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, SUTOR TECHNOLOGY GROUP LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for SUTOR TECHNOLOGY GROUP LTD is currently extremely low, coming in at 9.97%. Regardless of SUTR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SUTR's net profit margin of 1.15% is significantly lower than the industry average.
  • 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 Metals & Mining industry. The net income has significantly decreased by 71.3% when compared to the same quarter one year ago, falling from $3.88 million to $1.11 million.

You can view the full analysis from the report here: Sutor Technology Group Ratings Report

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