3 Stocks Pushing The Industrial 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 Industrial industry as a whole closed the day down 1.6% versus the S&P 500, which was down 0.8%. Laggards within the Industrial industry included Art's-Way Manufacturing ( ARTW), down 4.8%, P & F Industries ( PFIN), down 2.2%, WSI Industries ( WSCI), down 2.7%, Compx International ( CIX), down 3.9% and American DG Energy ( ADGE), down 5.6%.

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

Danaher ( DHR) is one of the companies that pushed the Industrial industry lower today. Danaher was down $1.29 (1.6%) to $78.16 on light volume. Throughout the day, 2,082,429 shares of Danaher exchanged hands as compared to its average daily volume of 2,899,100 shares. The stock ranged in price between $78.05-$79.17 after having opened the day at $79.08 as compared to the previous trading day's close of $79.45.

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. Danaher has a market cap of $55.6 billion and is part of the industrial goods sector. Shares are up 2.9% year-to-date as of the close of trading on Friday. Currently there are 14 analysts who rate Danaher a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Danaher 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, expanding profit margins, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on DHR go as follows:

  • DHR's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • DHR's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, DHR has a quick ratio of 1.58, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for DANAHER CORP is rather high; currently it is at 57.53%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.62% is above that of the industry average.
  • Net operating cash flow has increased to $991.70 million or 10.28% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -21.37%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Industrial Conglomerates industry average. The net income increased by 9.7% when compared to the same quarter one year prior, going from $616.80 million to $676.40 million.

You can view the full analysis from the report here: Danaher Ratings Report

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At the close, Compx International ( CIX) was down $0.45 (3.9%) to $11.05 on light volume. Throughout the day, 539 shares of Compx International exchanged hands as compared to its average daily volume of 8,300 shares. The stock ranged in price between $11.05-$11.25 after having opened the day at $11.25 as compared to the previous trading day's close of $11.50.

CompX International Inc. manufactures and sells security products and recreational marine components primarily in North America. The company operates through two segments, Security Products and Marine Components. Compx International has a market cap of $26.4 million and is part of the industrial goods sector. Shares are down 21.9% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Compx International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Compx International 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 attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on CIX go as follows:

  • CIX's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 11.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CIX 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 4.29, which clearly demonstrates the ability to cover short-term cash needs.
  • 35.30% is the gross profit margin for COMPX INTERNATIONAL INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.52% trails the industry average.
  • 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. When compared to other companies in the Commercial Services & Supplies industry and the overall market, COMPX INTERNATIONAL INC's return on equity is below that of both the industry average and the S&P 500.
  • CIX has underperformed the S&P 500 Index, declining 21.10% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

You can view the full analysis from the report here: Compx International Ratings Report

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Art's-Way Manufacturing ( ARTW) was another company that pushed the Industrial industry lower today. Art's-Way Manufacturing was down $0.24 (4.8%) to $4.76 on heavy volume. Throughout the day, 14,385 shares of Art's-Way Manufacturing exchanged hands as compared to its average daily volume of 7,400 shares. The stock ranged in price between $4.76-$5.00 after having opened the day at $4.99 as compared to the previous trading day's close of $5.00.

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, pressurized steel vessels, and steel cutting tools in the United States and internationally. Art's-Way Manufacturing has a market cap of $20.4 million and is part of the industrial goods sector. Shares are down 17.9% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Art's-Way Manufacturing as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

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Highlights from TheStreet Ratings analysis on ARTW go as follows:

  • ARTW's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 53.67% to -$0.62 million when compared to the same quarter last year. In addition, ARTS WAY MFG INC has also vastly surpassed the industry average cash flow growth rate of -24.48%.
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.43 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • ARTS WAY MFG 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, ARTS WAY MFG INC reported lower earnings of $0.38 versus $0.66 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 Machinery industry. The net income has significantly decreased by 50.9% when compared to the same quarter one year ago, falling from $0.52 million to $0.25 million.

You can view the full analysis from the report here: Art's-Way Manufacturing 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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