3 Stocks Pushing The Wholesale Industry Lower

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.

The Wholesale industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.1%. Laggards within the Wholesale industry included Peerless Systems ( PRLS), down 2.1%, Huttig Building Products ( HBP), down 5.3%, Bluelinx Holdings ( BXC), down 2.3%, Hudson Technologies ( HDSN), down 1.9% and Amcon Distributing ( DIT), down 3.5%.

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

Hudson Technologies ( HDSN) is one of the companies that pushed the Wholesale industry lower today. Hudson Technologies was down $0.06 (1.9%) to $3.13 on light volume. Throughout the day, 43,630 shares of Hudson Technologies exchanged hands as compared to its average daily volume of 71,800 shares. The stock ranged in price between $3.12-$3.21 after having opened the day at $3.18 as compared to the previous trading day's close of $3.19.

Hudson Technologies, Inc. operates as a refrigerant services company that provides solutions to the refrigeration industry in the United States and internationally. Hudson Technologies has a market cap of $99.9 million and is part of the services sector. Shares are down 13.8% year-to-date as of the close of trading on Friday. Currently there are 3 analysts who rate Hudson Technologies a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Hudson Technologies 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on HDSN go as follows:

  • HDSN's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • HDSN's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, HDSN has a quick ratio of 1.93, which demonstrates the ability of the company to cover short-term liquidity needs.
  • HUDSON TECHNOLOGIES INC reported flat earnings per share in the most recent quarter. 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, HUDSON TECHNOLOGIES INC swung to a loss, reporting -$0.24 versus $0.49 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.24).
  • 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, HUDSON TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for HUDSON TECHNOLOGIES INC is currently extremely low, coming in at 14.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.82% significantly trails the industry average.

You can view the full analysis from the report here: Hudson Technologies 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.

At the close, Bluelinx Holdings ( BXC) was down $0.03 (2.3%) to $1.30 on light volume. Throughout the day, 82,127 shares of Bluelinx Holdings exchanged hands as compared to its average daily volume of 171,400 shares. The stock ranged in price between $1.29-$1.38 after having opened the day at $1.30 as compared to the previous trading day's close of $1.33.

Bluelinx Holdings has a market cap of $116.4 million and is part of the services sector. Shares are down 31.8% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Peerless Systems ( PRLS) was another company that pushed the Wholesale industry lower today. Peerless Systems was down $0.10 (2.1%) to $4.55 on average volume. Throughout the day, 10,397 shares of Peerless Systems exchanged hands as compared to its average daily volume of 13,000 shares. The stock ranged in price between $4.45-$4.55 after having opened the day at $4.48 as compared to the previous trading day's close of $4.65.

Peerless Systems Corporation develops and licenses software-based digital imaging and networking systems and supporting electronic technologies to original equipment manufacturers (OEMs) of digital document products located primarily in the United States and Japan. Peerless Systems has a market cap of $12.3 million and is part of the services sector. Shares are up 27.8% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Peerless Systems as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on PRLS go as follows:

  • PRLS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 49.98, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for PEERLESS SYSTEMS CORP is currently very high, coming in at 85.74%. Regardless of PRLS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PRLS's net profit margin of 9.32% 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 Software industry. The net income has significantly decreased by 62.2% when compared to the same quarter one year ago, falling from $0.14 million to $0.05 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 Software industry and the overall market, PEERLESS SYSTEMS CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Peerless Systems 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.

More from Markets

North Korea, Apple, GPDR and Gap - 5 Things You Must Know

North Korea, Apple, GPDR and Gap - 5 Things You Must Know

One Thing to Consider Over Memorial Day Weekend: Are Stocks About to Collapse?

One Thing to Consider Over Memorial Day Weekend: Are Stocks About to Collapse?

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Oil Falls Sharply After Saudi Arabia, Russia Suggest Production Cut Easing

Oil Falls Sharply After Saudi Arabia, Russia Suggest Production Cut Easing

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Netflix Ready to Surpass Disney as America's Most Valuable Media Company