3 Stocks Pushing The Wholesale 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 Wholesale industry as a whole closed the day down 0.9% versus the S&P 500, which was down 1.6%. Laggards within the Wholesale industry included Armco Metals Holdings ( AMCO), down 8.7%, China Auto Logistics ( CALI), down 3.7%, Huttig Building Products ( HBP), down 2.2%, Addvantage Technologies Group ( AEY), down 3.0% and InfoSonics ( IFON), down 9.3%.

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

InfoSonics ( IFON) is one of the companies that pushed the Wholesale industry lower today. InfoSonics was down $0.14 (9.3%) to $1.38 on light volume. Throughout the day, 245,974 shares of InfoSonics exchanged hands as compared to its average daily volume of 502,000 shares. The stock ranged in price between $1.34-$1.65 after having opened the day at $1.64 as compared to the previous trading day's close of $1.52.

InfoSonics Corporation designs, develops, manufactures, and sells wireless telecommunication products and accessories to wireless carriers, distributors, retailers, dealer agents, resellers, and original equipment manufacturers. InfoSonics has a market cap of $24.8 million and is part of the services sector. Shares are down 0.7% year-to-date as of the close of trading on Friday.

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 InfoSonics 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 also find weaknesses including poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on IFON go as follows:

  • The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues rose by 25.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • IFON 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 3.23, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for INFOSONICS CORP is rather low; currently it is at 19.71%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.04% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to $0.88 million or 51.87% 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: InfoSonics 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, Addvantage Technologies Group ( AEY) was down $0.07 (3.0%) to $2.30 on average volume. Throughout the day, 43,184 shares of Addvantage Technologies Group exchanged hands as compared to its average daily volume of 37,400 shares. The stock ranged in price between $2.27-$2.36 after having opened the day at $2.35 as compared to the previous trading day's close of $2.37.

ADDvantage Technologies Group, Inc. distributes and services a line of electronics and hardware products for the cable television industry. Addvantage Technologies Group has a market cap of $23.6 million and is part of the services sector. Shares are down 11.9% year-to-date as of the close of trading on Friday.

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 Addvantage Technologies Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on AEY go as follows:

  • The revenue growth greatly exceeded the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 46.3%. 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.
  • AEY's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AEY has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
  • ADDVANTAGE TECHNOLOGIES GP's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ADDVANTAGE TECHNOLOGIES GP increased its bottom line by earning $0.15 versus $0.12 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 56.6% when compared to the same quarter one year ago, falling from $0.24 million to $0.10 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, ADDVANTAGE TECHNOLOGIES GP's return on equity significantly trails that of both the industry average and the S&P 500.

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

China Auto Logistics ( CALI) was another company that pushed the Wholesale industry lower today. China Auto Logistics was down $0.04 (3.7%) to $1.04 on light volume. Throughout the day, 13,000 shares of China Auto Logistics exchanged hands as compared to its average daily volume of 23,400 shares. The stock ranged in price between $1.02-$1.22 after having opened the day at $1.04 as compared to the previous trading day's close of $1.08.

China Auto Logistics Inc. sells and trades in imported automobiles in the People's Republic of China. China Auto Logistics has a market cap of $4.7 million and is part of the services sector. Shares are down 67.1% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates China Auto Logistics 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, generally high debt management risk, disappointing return on equity and poor profit margins.

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 CALI go as follows:

  • The debt-to-equity ratio is very high at 3.51 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CALI maintains a poor quick ratio of 0.72, which illustrates the inability to avoid short-term cash problems.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Specialty Retail industry and the overall market, CHINA AUTO LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA AUTO LOGISTICS INC is currently extremely low, coming in at 0.92%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.62% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$13.35 million or 621.85% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • CHINA AUTO LOGISTICS INC 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, CHINA AUTO LOGISTICS INC reported lower earnings of $0.16 versus $0.67 in the prior year.

You can view the full analysis from the report here: China Auto Logistics 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

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'