3 Stocks Pushing The Chemicals Industry Lower

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The Chemicals industry as a whole closed the day down 0.8% versus the S&P 500, which was down 0.8%. Laggards within the Chemicals industry included Methes Energies International ( MEIL), down 4.0%, NL Industries ( NL), down 3.6%, Metabolix ( MBLX), down 10.8%, Lightbridge ( LTBR), down 6.8% and Flexible Solutions International ( FSI), down 1.6%.

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

Flexible Solutions International ( FSI) is one of the companies that pushed the Chemicals industry lower today. Flexible Solutions International was down $0.02 (1.6%) to $1.27 on light volume. Throughout the day, 189,085 shares of Flexible Solutions International exchanged hands as compared to its average daily volume of 379,600 shares. The stock ranged in price between $1.26-$1.48 after having opened the day at $1.29 as compared to the previous trading day's close of $1.29.

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water. Flexible Solutions International has a market cap of $19.0 million and is part of the basic materials sector. Shares are up 34.4% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Flexible Solutions International a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Flexible Solutions International as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from TheStreet Ratings analysis on FSI go as follows:

  • Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 25.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 471.4% when compared to the same quarter one year prior, rising from $0.07 million to $0.40 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Chemicals industry and the overall market on the basis of return on equity, FLEXIBLE SOLUTIONS INTL INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • FSI, with its decline in revenue, underperformed when compared the industry average of 7.6%. Since the same quarter one year prior, revenues fell by 12.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • FLEXIBLE SOLUTIONS INTL INC 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, FLEXIBLE SOLUTIONS INTL INC turned its bottom line around by earning $0.14 versus -$0.08 in the prior year. For the next year, the market is expecting a contraction of 78.6% in earnings ($0.03 versus $0.14).

You can view the full analysis from the report here: Flexible Solutions International 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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