3 Stocks Pushing The Industrial Goods Sector 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 Industrial Goods sector as a whole closed the day down 0.3% versus the S&P 500, which was unchanged. Laggards within the Industrial Goods sector included Bonso Electronics International ( BNSO), down 6.0%, Tecnoglass ( TGLS), down 2.2%, American DG Energy ( ADGE), down 2.4%, IntriCon ( IIN), down 3.1% and American Electric Technologies ( AETI), down 1.8%.

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

Woodward ( WWD) is one of the companies that pushed the Industrial Goods sector lower today. Woodward was down $3.26 (6.3%) to $48.56 on heavy volume. Throughout the day, 901,365 shares of Woodward exchanged hands as compared to its average daily volume of 249,200 shares. The stock ranged in price between $47.17-$51.52 after having opened the day at $51.52 as compared to the previous trading day's close of $51.81.

Woodward, Inc. designs, manufactures, and services energy control and optimization solutions for the aerospace and energy markets worldwide. Woodward has a market cap of $3.4 billion and is part of the aerospace/defense industry. Shares are up 13.6% year-to-date as of the close of trading on Monday. Currently there are 7 analysts who rate Woodward a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Woodward 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on WWD go as follows:

  • WWD's revenue growth has slightly outpaced the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 8.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
  • WOODWARD INC 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. We feel that this trend should continue. During the past fiscal year, WOODWARD INC increased its bottom line by earning $2.10 versus $2.01 in the prior year. This year, the market expects an improvement in earnings ($2.45 versus $2.10).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 94.4% when compared to the same quarter one year prior, rising from $23.66 million to $46.00 million.
  • Net operating cash flow has increased to $59.25 million or 48.00% when compared to the same quarter last year. In addition, WOODWARD INC has also vastly surpassed the industry average cash flow growth rate of -21.94%.

You can view the full analysis from the report here: Woodward Ratings Report

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At the close, American Electric Technologies ( AETI) was down $0.11 (1.8%) to $5.91 on heavy volume. Throughout the day, 20,269 shares of American Electric Technologies exchanged hands as compared to its average daily volume of 9,900 shares. The stock ranged in price between $5.86-$6.26 after having opened the day at $6.26 as compared to the previous trading day's close of $6.02.

American Electric Technologies, Inc. provides power delivery solutions to the energy industry in the United States and internationally. American Electric Technologies has a market cap of $49.2 million and is part of the aerospace/defense industry. Shares are down 39.7% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates American Electric Technologies as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on AETI go as follows:

  • AETI'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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 377.25% to $2.22 million when compared to the same quarter last year. In addition, AMERICAN ELECTRIC TECH INC has also vastly surpassed the industry average cash flow growth rate of -24.97%.
  • Despite the weak revenue results, AETI has outperformed against the industry average of 11.3%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • AMERICAN ELECTRIC TECH INC's earnings per share declined by 8.3% 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, AMERICAN ELECTRIC TECH INC increased its bottom line by earning $0.49 versus $0.25 in the prior year. For the next year, the market is expecting a contraction of 30.6% in earnings ($0.34 versus $0.49).

You can view the full analysis from the report here: American Electric Technologies Ratings Report

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IntriCon ( IIN) was another company that pushed the Industrial Goods sector lower today. IntriCon was down $0.18 (3.1%) to $5.60 on heavy volume. Throughout the day, 18,291 shares of IntriCon exchanged hands as compared to its average daily volume of 8,900 shares. The stock ranged in price between $5.55-$5.88 after having opened the day at $5.74 as compared to the previous trading day's close of $5.78.

IntriCon Corporation, together with its subsidiaries, designs, develops, engineers, and manufactures body-worn devices in the United States and internationally. IntriCon has a market cap of $34.4 million and is part of the aerospace/defense industry. Shares are up 50.0% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates IntriCon a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates IntriCon as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk.

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Highlights from TheStreet Ratings analysis on IIN go as follows:

  • The revenue growth greatly exceeded the industry average of 3.7%. Since the same quarter one year prior, revenues rose by 37.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 212.50% and other important driving factors, this stock has surged by 45.98% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • INTRICON CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTRICON CORP swung to a loss, reporting -$0.41 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.44 versus -$0.41).
  • Despite currently having a low debt-to-equity ratio of 0.42, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that IIN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.66 is low and demonstrates weak liquidity.
  • The gross profit margin for INTRICON CORP is currently lower than what is desirable, coming in at 26.32%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.28% trails that of the industry average.

You can view the full analysis from the report here: IntriCon 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.

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