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 0.1% versus the S&P 500, which was down 0.6%. Laggards within the Materials & Construction industry included Avalon Holdings ( AWX), down 5.3%, Abengoa ( ABGB), down 2.3%, Comfort Systems USA ( FIX), down 1.7%, Continental Building Products ( CBPX), down 2.8% and CatchMark Timber ( CTT), down 1.7%.

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

Continental Building Products ( CBPX) is one of the companies that pushed the Materials & Construction industry lower today. Continental Building Products was down $0.41 (2.8%) to $14.12 on light volume. Throughout the day, 71,761 shares of Continental Building Products exchanged hands as compared to its average daily volume of 170,400 shares. The stock ranged in price between $14.05-$14.51 after having opened the day at $14.30 as compared to the previous trading day's close of $14.53.

Continental Building Products has a market cap of $647.8 million and is part of the industrial goods sector. Shares are unchanged year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Continental Building Products a buy, no analysts rate it a sell, and 2 rate it a hold.

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At the close, Comfort Systems USA ( FIX) was down $0.24 (1.7%) to $14.14 on average volume. Throughout the day, 105,750 shares of Comfort Systems USA exchanged hands as compared to its average daily volume of 138,700 shares. The stock ranged in price between $14.06-$14.40 after having opened the day at $14.22 as compared to the previous trading day's close of $14.38.

Comfort Systems USA, Inc. provides installation, maintenance, repair, and replacement services for heating, ventilation, and air conditioning (HVAC) systems in the mechanical services industry. Comfort Systems USA has a market cap of $551.5 million and is part of the industrial goods sector. Shares are down 25.8% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Comfort Systems USA a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Comfort Systems USA 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, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on FIX go as follows:

  • The revenue growth came in higher than the industry average of 11.3%. Since the same quarter one year prior, revenues slightly increased by 3.3%. 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.
  • FIX's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 234.10% to $22.39 million when compared to the same quarter last year. In addition, COMFORT SYSTEMS USA INC has also vastly surpassed the industry average cash flow growth rate of -17.32%.
  • 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 Construction & Engineering industry and the overall market, COMFORT SYSTEMS USA INC's return on equity is below that of both the industry average and the S&P 500.
  • COMFORT SYSTEMS USA INC's earnings per share declined by 42.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, COMFORT SYSTEMS USA INC increased its bottom line by earning $0.73 versus $0.35 in the prior year. For the next year, the market is expecting a contraction of 17.8% in earnings ($0.60 versus $0.73).

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

Abengoa ( ABGB) was another company that pushed the Materials & Construction industry lower today. Abengoa was down $0.65 (2.3%) to $27.28 on average volume. Throughout the day, 11,760 shares of Abengoa exchanged hands as compared to its average daily volume of 12,700 shares. The stock ranged in price between $27.19-$27.41 after having opened the day at $27.21 as compared to the previous trading day's close of $27.93.

Abengoa has a market cap of $4.6 billion and is part of the industrial goods sector. Shares are up 81.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Abengoa 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.

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