3 Stocks Pushing The Materials & Construction Industry Lower

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The Materials & Construction industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.1%. Laggards within the Materials & Construction industry included Skyline ( SKY), down 9.8%, Guanwei Recycling ( GPRC), down 5.2%, Integrated Electrical Services ( IESC), down 4.5%, Cementos Pacasmayo SAA ( CPAC), down 1.7% and Abengoa ( ABGB), down 2.7%.

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

Cementos Pacasmayo SAA ( CPAC) is one of the companies that pushed the Materials & Construction industry lower today. Cementos Pacasmayo SAA was down $0.16 (1.7%) to $9.35 on heavy volume. Throughout the day, 44,612 shares of Cementos Pacasmayo SAA exchanged hands as compared to its average daily volume of 28,400 shares. The stock ranged in price between $9.33-$9.47 after having opened the day at $9.47 as compared to the previous trading day's close of $9.51.

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in the northern region of Peru. It operates in three segments: Cement, Concrete and Blocks; Quicklime; and Construction Supplies. Cementos Pacasmayo SAA has a market cap of $1.1 billion and is part of the utilities sector. Shares are down 19.7% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Cementos Pacasmayo SAA a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Cementos Pacasmayo SAA as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from TheStreet Ratings analysis on CPAC go as follows:

  • CPAC's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 6.12, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has slightly increased to $21.23 million or 8.93% when compared to the same quarter last year. Despite an increase in cash flow of 8.93%, CEMENTOS PACASMAYO SAA is still growing at a significantly lower rate than the industry average of 338.63%.
  • 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 Construction Materials industry and the overall market on the basis of return on equity, CEMENTOS PACASMAYO SAA has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • CPAC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 25.44%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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: Cementos Pacasmayo SAA Ratings Report

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At the close, Integrated Electrical Services ( IESC) was down $0.34 (4.5%) to $7.28 on heavy volume. Throughout the day, 33,570 shares of Integrated Electrical Services exchanged hands as compared to its average daily volume of 14,900 shares. The stock ranged in price between $7.25-$7.95 after having opened the day at $7.70 as compared to the previous trading day's close of $7.62.

Integrated Electrical Services, Inc., through its subsidiaries, provides communications, residential, commercial and industrial, and infrastructure solutions in the United States. Integrated Electrical Services has a market cap of $171.1 million and is part of the utilities sector. Shares are up 41.4% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Integrated Electrical Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on IESC go as follows:

  • The revenue growth came in higher than the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 12.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IESC's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
  • INTEGRATED ELECTRICAL SVCS 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. During the past fiscal year, INTEGRATED ELECTRICAL SVCS continued to lose money by earning -$0.14 versus -$0.18 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 334.9% when compared to the same quarter one year prior, rising from -$1.14 million to $2.67 million.
  • Net operating cash flow has increased to $3.13 million or 21.03% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -18.52%.

You can view the full analysis from the report here: Integrated Electrical 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.

Guanwei Recycling ( GPRC) was another company that pushed the Materials & Construction industry lower today. Guanwei Recycling was down $0.04 (5.2%) to $0.73 on light volume. Throughout the day, 21,059 shares of Guanwei Recycling exchanged hands as compared to its average daily volume of 77,600 shares. The stock ranged in price between $0.71-$0.80 after having opened the day at $0.80 as compared to the previous trading day's close of $0.77.

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 $7.0 million and is part of the utilities sector. Shares are down 73.3% year-to-date as of the close of trading on Friday.

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.

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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.

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3 Stocks Pushing The Materials & Construction Industry Lower

3 Stocks Pushing The Materials & Construction Industry Lower