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The Wholesale industry as a whole closed the day down 0.8% versus the S&P 500, which was down 0.7%. Laggards within the Wholesale industry included Watsco ( WSO.B), down 2.0%, China Metro-Rural Holdings ( CNR), down 3.7%, Coast Distribution System ( CRV), down 1.6%, Peerless Systems ( PRLS), down 2.2% and China Auto Logistics ( CALI), down 8.5%.

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

China Auto Logistics ( CALI) is one of the companies that pushed the Wholesale industry lower today. China Auto Logistics was down $0.15 (8.5%) to $1.62 on average volume. Throughout the day, 31,913 shares of China Auto Logistics exchanged hands as compared to its average daily volume of 34,600 shares. The stock ranged in price between $1.61-$1.77 after having opened the day at $1.71 as compared to the previous trading day's close of $1.77.

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 $6.8 million and is part of the basic materials sector. Shares are down 52.8% year-to-date as of the close of trading on Tuesday.

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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.

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% is significantly below 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

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At the close, Peerless Systems ( PRLS) was down $0.10 (2.2%) to $4.41 on light volume. Throughout the day, 200 shares of Peerless Systems exchanged hands as compared to its average daily volume of 11,900 shares. The stock ranged in price between $4.41-$4.41 after having opened the day at $4.41 as compared to the previous trading day's close of $4.51.

Peerless Systems Corporation develops and licenses software-based digital imaging and networking systems and supporting electronic technologies to original equipment manufacturers (OEMs) of digital document products located primarily in the United States and Japan. Peerless Systems has a market cap of $12.0 million and is part of the basic materials sector. Shares are up 24.0% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Peerless Systems as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on PRLS go as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 134.1% when compared to the same quarter one year prior, rising from -$0.40 million to $0.14 million.
  • The revenue fell significantly faster than the industry average of 11.5%. Since the same quarter one year prior, revenues fell by 32.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly decreased to -$0.41 million or 140.85% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 Software industry and the overall market, PEERLESS SYSTEMS CORP'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: Peerless Systems Ratings Report

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China Metro-Rural Holdings ( CNR) was another company that pushed the Wholesale industry lower today. China Metro-Rural Holdings was down $0.03 (3.7%) to $0.90 on light volume. Throughout the day, 2,294 shares of China Metro-Rural Holdings exchanged hands as compared to its average daily volume of 10,400 shares. The stock ranged in price between $0.90-$0.95 after having opened the day at $0.94 as compared to the previous trading day's close of $0.93.

China Metro-Rural Holdings has a market cap of $65.9 million and is part of the basic materials sector. Shares are up 3.9% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates China Metro-Rural Holdings 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.