3 Stocks Driving The Wholesale Industry Higher

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 154 points (0.9%) at 17,210 as of Wednesday, Sept. 24, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,794 issues advancing vs. 1,244 declining with 169 unchanged.

The Wholesale industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.8%. Top gainers within the Wholesale industry included Forward Industries ( FORD), up 3.0%, Hudson Technologies ( HDSN), up 6.3%, Wayside Technology Group ( WSTG), up 2.2%, Richardson Electronics ( RELL), up 1.8% and Speed Commerce ( SPDC), up 4.0%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Richardson Electronics ( RELL) is one of the companies that pushed the Wholesale industry higher today. Richardson Electronics was up $0.18 (1.8%) to $10.13 on average volume. Throughout the day, 34,276 shares of Richardson Electronics exchanged hands as compared to its average daily volume of 36,300 shares. The stock ranged in a price between $9.98-$10.20 after having opened the day at $10.03 as compared to the previous trading day's close of $9.95.

Richardson Electronics, Ltd. provides engineered solutions, power grid microwave tubes and related components, and customized display solutions. Richardson Electronics has a market cap of $117.9 million and is part of the services sector. Shares are down 12.4% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Richardson Electronics a buy, no analysts rate it a sell, and none rate 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 Richardson Electronics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on RELL go as follows:

  • 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 1267.4% when compared to the same quarter one year ago, falling from -$0.18 million to -$2.48 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, RICHARDSON ELECTRONICS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RICHARDSON ELECTRONICS LTD is currently lower than what is desirable, coming in at 29.57%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.99% is significantly below that of the industry average.
  • The share price of RICHARDSON ELECTRONICS LTD has not done very well: it is down 12.84% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • RICHARDSON ELECTRONICS LTD 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. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, RICHARDSON ELECTRONICS LTD swung to a loss, reporting -$0.04 versus $0.04 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$0.04).

You can view the full analysis from the report here: Richardson Electronics 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, Wayside Technology Group ( WSTG) was up $0.35 (2.2%) to $16.02 on average volume. Throughout the day, 15,608 shares of Wayside Technology Group exchanged hands as compared to its average daily volume of 15,700 shares. The stock ranged in a price between $15.34-$16.02 after having opened the day at $15.34 as compared to the previous trading day's close of $15.67.

Wayside Technology Group, Inc. operates as an information technology channel company in the United States and Canada. The company resells computer software and hardware developed by others, as well as provides technical services to customers primarily in the United States and Canada. Wayside Technology Group has a market cap of $76.3 million and is part of the services sector. Shares are up 15.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Wayside Technology Group a buy, no analysts rate it a sell, and none rate 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 Wayside Technology Group 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, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on WSTG go as follows:

  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 13.9%. 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.
  • WSTG 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. To add to this, WSTG has a quick ratio of 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to its closing price of one year ago, WSTG's share price has jumped by 25.95%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WSTG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 5138.46% to $2.62 million when compared to the same quarter last year. In addition, WAYSIDE TECHNOLOGY GROUP INC has also vastly surpassed the industry average cash flow growth rate of -20.60%.

You can view the full analysis from the report here: Wayside Technology Group 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.

Hudson Technologies ( HDSN) was another company that pushed the Wholesale industry higher today. Hudson Technologies was up $0.20 (6.3%) to $3.44 on heavy volume. Throughout the day, 324,186 shares of Hudson Technologies exchanged hands as compared to its average daily volume of 72,000 shares. The stock ranged in a price between $3.27-$3.48 after having opened the day at $3.28 as compared to the previous trading day's close of $3.23.

Hudson Technologies, Inc. operates as a refrigerant services company that provides solutions to the refrigeration industry in the United States and internationally. Hudson Technologies has a market cap of $103.5 million and is part of the services sector. Shares are down 12.7% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate Hudson Technologies a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Hudson Technologies 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on HDSN go as follows:

  • HDSN's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • HDSN's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, HDSN has a quick ratio of 1.93, which demonstrates the ability of the company to cover short-term liquidity needs.
  • HUDSON TECHNOLOGIES INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, HUDSON TECHNOLOGIES INC swung to a loss, reporting -$0.24 versus $0.49 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.24).
  • 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 Commercial Services & Supplies industry and the overall market, HUDSON TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for HUDSON TECHNOLOGIES INC is currently extremely low, coming in at 14.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.82% significantly trails the industry average.

You can view the full analysis from the report here: Hudson Technologies 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.

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.

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