3 Stocks Pushing The Chemicals 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 Chemicals industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.6%. Laggards within the Chemicals industry included Ikonics ( IKNX), down 2.7%, Methes Energies International ( MEIL), down 4.8%, Ceres ( CERE), down 2.7%, Oil-Dri Corp of America ( ODC), down 2.8% and Omnova Solutions ( OMN), down 4.7%.

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

Innophos Holdings ( IPHS) is one of the companies that pushed the Chemicals industry lower today. Innophos Holdings was down $1.18 (2.1%) to $55.65 on average volume. Throughout the day, 109,215 shares of Innophos Holdings exchanged hands as compared to its average daily volume of 116,200 shares. The stock ranged in price between $55.60-$56.80 after having opened the day at $56.80 as compared to the previous trading day's close of $56.83.

Innophos Holdings, Inc., through its subsidiaries, produces performance-critical and nutritional specialty ingredients with applications in food, beverage, dietary supplements, pharmaceutical, oral care, and industrial end markets. Innophos Holdings has a market cap of $1.2 billion and is part of the basic materials sector. Shares are up 16.9% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Innophos Holdings a buy, no analysts rate it a sell, and 1 rates 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 Innophos Holdings as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on IPHS go as follows:

  • 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 78.3% when compared to the same quarter one year prior, rising from $11.57 million to $20.63 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.6%. Since the same quarter one year prior, revenues slightly increased by 3.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IPHS's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, IPHS has a quick ratio of 2.12, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

You can view the full analysis from the report here: Innophos Holdings 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, Omnova Solutions ( OMN) was down $0.35 (4.7%) to $7.04 on heavy volume. Throughout the day, 168,067 shares of Omnova Solutions exchanged hands as compared to its average daily volume of 85,200 shares. The stock ranged in price between $7.00-$7.42 after having opened the day at $7.33 as compared to the previous trading day's close of $7.39.

OMNOVA Solutions Inc. provides emulsion polymers, specialty chemicals, and engineered surfaces for various commercial, industrial, and residential end uses primarily in North America, Europe, and Asia. The company operates in two segments, Performance Chemicals and Engineered Surfaces. Omnova Solutions has a market cap of $357.7 million and is part of the basic materials sector. Shares are down 18.9% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Omnova Solutions a buy, no analysts rate it a sell, and 1 rates 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 Omnova Solutions as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on OMN go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Chemicals industry average. The net income increased by 17.2% when compared to the same quarter one year prior, going from $2.90 million to $3.40 million.
  • OMNOVA SOLUTIONS INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OMNOVA SOLUTIONS INC reported lower earnings of $0.44 versus $0.55 in the prior year. This year, the market expects an improvement in earnings ($0.49 versus $0.44).
  • The gross profit margin for OMNOVA SOLUTIONS INC is rather low; currently it is at 19.74%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.27% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to -$3.80 million or 129.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Omnova Solutions 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.

Ceres ( CERE) was another company that pushed the Chemicals industry lower today. Ceres was down $0.01 (2.7%) to $0.46 on light volume. Throughout the day, 77,098 shares of Ceres exchanged hands as compared to its average daily volume of 270,200 shares. The stock ranged in price between $0.45-$0.49 after having opened the day at $0.45 as compared to the previous trading day's close of $0.48.

Ceres, Inc., an agricultural biotechnology company, develops and sells energy crops to produce renewable bioenergy feedstocks in North America. Ceres has a market cap of $21.6 million and is part of the basic materials sector. Shares are down 65.4% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Ceres a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Ceres as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

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 CERE go as follows:

  • 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 Oil, Gas & Consumable Fuels industry and the overall market, CERES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CERE'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 59.84%, 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.
  • The revenue fell significantly faster than the industry average of 3.1%. Since the same quarter one year prior, revenues fell by 40.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • CERES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CERES INC reported poor results of -$1.31 versus -$1.22 in the prior year. This year, the market expects an improvement in earnings (-$0.61 versus -$1.31).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 17.1% when compared to the same quarter one year prior, going from -$9.32 million to -$7.73 million.

You can view the full analysis from the report here: Ceres 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

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists