3 Stocks Pushing The Materials & Construction Industry Lower

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The Materials & Construction industry as a whole closed the day down 1.2% versus the S&P 500, which was down 1.6%. Laggards within the Materials & Construction industry included Jewett-Cameron Trading ( JCTCF), down 2.4%, China Ceramics ( CCCL), down 6.5%, Sharps Compliance ( SMED), down 2.0%, James Hardie Industries ( JHX), down 1.7% and India Globalization Capital ( IGC), down 2.8%.

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 $0.91 (1.7%) to $52.87 on heavy volume. Throughout the day, 5,802 shares of James Hardie Industries exchanged hands as compared to its average daily volume of 3,200 shares. The stock ranged in price between $52.73-$53.52 after having opened the day at $53.52 as compared to the previous trading day's close of $53.78.

James Hardie Industries has a market cap of $4.7 billion and is part of the industrial goods sector. Shares are down 6.3% year-to-date as of the close of trading on Wednesday.

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At the close, Sharps Compliance ( SMED) was down $0.09 (2.0%) to $4.34 on light volume. Throughout the day, 4,627 shares of Sharps Compliance exchanged hands as compared to its average daily volume of 28,400 shares. The stock ranged in price between $4.26-$4.44 after having opened the day at $4.44 as compared to the previous trading day's close of $4.43.

Sharps Compliance Corp. provides management solutions and services for medical waste, used healthcare materials, and patient dispensed unused or expired medications in the United States. Sharps Compliance has a market cap of $66.7 million and is part of the industrial goods sector. Shares are down 7.8% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts who rate Sharps Compliance a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Sharps Compliance as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from TheStreet Ratings analysis on SMED go as follows:

  • The revenue growth came in higher than the industry average of 20.4%. Since the same quarter one year prior, revenues rose by 35.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SMED 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 5.02, which clearly demonstrates the ability to cover short-term cash needs.
  • SHARPS COMPLIANCE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SHARPS COMPLIANCE CORP turned its bottom line around by earning $0.07 versus -$0.18 in the prior year. For the next year, the market is expecting a contraction of 42.9% in earnings ($0.04 versus $0.07).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Providers & Services industry and the overall market on the basis of return on equity, SHARPS COMPLIANCE CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.55 million or 116.01% 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: Sharps Compliance Ratings Report

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China Ceramics ( CCCL) was another company that pushed the Materials & Construction industry lower today. China Ceramics was down $0.07 (6.5%) to $1.01 on light volume. Throughout the day, 49,315 shares of China Ceramics exchanged hands as compared to its average daily volume of 78,800 shares. The stock ranged in price between $1.01-$1.08 after having opened the day at $1.05 as compared to the previous trading day's close of $1.08.

China Ceramics has a market cap of $21.8 million and is part of the industrial goods sector. Shares are down 56.1% year-to-date as of the close of trading on Wednesday.

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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