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 was unchanged today versus the S&P 500, which was unchanged. Laggards within the Industrial Goods sector included Bonso Electronics International ( BNSO), down 6.7%, WSI Industries ( WSCI), down 2.1%, American DG Energy ( ADGE), down 4.8%, IntriCon ( IIN), down 4.9% and China Ceramics ( CCCL), down 3.4%.

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

Tower International ( TOWR) is one of the companies that pushed the Industrial Goods sector lower today. Tower International was down $0.40 (1.7%) to $23.22 on light volume. Throughout the day, 140,804 shares of Tower International exchanged hands as compared to its average daily volume of 199,400 shares. The stock ranged in price between $23.04-$23.57 after having opened the day at $23.57 as compared to the previous trading day's close of $23.62.

Tower International, Inc. manufactures and sells engineered structural metal components and assemblies for the automotive original equipment manufacturers in the Americas and Internationally. It operates through two segments, the Americas and International. Tower International has a market cap of $498.0 million and is part of the automotive industry. Shares are up 10.4% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Tower International a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Tower International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, increase in stock price during the past year, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from TheStreet Ratings analysis on TOWR go as follows:

  • TOWR's revenue growth has slightly outpaced the industry average of 2.0%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 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 Auto Components industry and the overall market, TOWER INTERNATIONAL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 236.4% when compared to the same quarter one year prior, rising from $3.32 million to $11.16 million.
  • TOWER INTERNATIONAL INC 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, TOWER INTERNATIONAL INC reported poor results of -$1.04 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($3.10 versus -$1.04).

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

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At the close, China Ceramics ( CCCL) was down $0.03 (3.4%) to $0.85 on average volume. Throughout the day, 80,298 shares of China Ceramics exchanged hands as compared to its average daily volume of 69,000 shares. The stock ranged in price between $0.85-$0.89 after having opened the day at $0.86 as compared to the previous trading day's close of $0.88.

China Ceramics has a market cap of $17.0 million and is part of the automotive industry. Shares are down 65.9% year-to-date as of the close of trading on Thursday.

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IntriCon ( IIN) was another company that pushed the Industrial Goods sector lower today. IntriCon was down $0.31 (4.9%) to $6.04 on heavy volume. Throughout the day, 21,905 shares of IntriCon exchanged hands as compared to its average daily volume of 9,400 shares. The stock ranged in price between $5.86-$6.20 after having opened the day at $6.02 as compared to the previous trading day's close of $6.35.

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 $36.7 million and is part of the automotive industry. Shares are up 63.5% year-to-date as of the close of trading on Thursday. 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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