3 Stocks Pushing The Materials & Construction 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 Materials & Construction industry as a whole closed the day down 1.4% versus the S&P 500, which was down 0.8%. Laggards within the Materials & Construction industry included Guanwei Recycling ( GPRC), down 9.8%, Skyline ( SKY), down 3.3%, China Ceramics ( CCCL), down 4.4%, James Hardie Industries ( JHX), down 4.2% and India Globalization Capital ( IGC), down 5.1%.

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

James Hardie Industries ( JHX) is one of the companies that pushed the Materials & Construction industry lower today. James Hardie Industries was down $2.33 (4.2%) to $53.25 on heavy volume. Throughout the day, 4,790 shares of James Hardie Industries exchanged hands as compared to its average daily volume of 3,000 shares. The stock ranged in price between $53.09-$53.68 after having opened the day at $53.68 as compared to the previous trading day's close of $55.58.

James Hardie Industries has a market cap of $5.0 billion and is part of the industrial goods sector. Shares are down 3.1% year-to-date as of the close of trading on Friday.

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At the close, China Ceramics ( CCCL) was down $0.05 (4.4%) to $1.05 on average volume. Throughout the day, 69,102 shares of China Ceramics exchanged hands as compared to its average daily volume of 74,600 shares. The stock ranged in price between $1.02-$1.13 after having opened the day at $1.11 as compared to the previous trading day's close of $1.10.

China Ceramics has a market cap of $22.4 million and is part of the industrial goods sector. Shares are down 55.0% year-to-date as of the close of trading on Friday.

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Guanwei Recycling ( GPRC) was another company that pushed the Materials & Construction industry lower today. Guanwei Recycling was down $0.07 (9.8%) to $0.63 on heavy volume. Throughout the day, 138,999 shares of Guanwei Recycling exchanged hands as compared to its average daily volume of 77,500 shares. The stock ranged in price between $0.53-$0.68 after having opened the day at $0.67 as compared to the previous trading day's close of $0.70.

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 $7.4 million and is part of the industrial goods sector. Shares are down 75.7% 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 56.71%, 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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