3 Industrial Stocks Driving The Industry Higher

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 1 points (0.0%) at 17,689 as of Wednesday, Nov. 19, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,199 issues advancing vs. 1,792 declining with 180 unchanged.

The Industrial industry as a whole closed the day down 1.2% versus the S&P 500, which was down 0.3%. Top gainers within the Industrial industry included Intelligent Systems ( INS), up 2.4%, CVD Equipment ( CVV), up 6.2%, GreenHunter Resources ( GRH), up 2.2%, Magnetek ( MAG), up 6.3% and Arotech ( ARTX), up 3.2%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Magnetek ( MAG) is one of the companies that pushed the Industrial industry higher today. Magnetek was up $2.22 (6.3%) to $37.19 on average volume. Throughout the day, 11,708 shares of Magnetek exchanged hands as compared to its average daily volume of 14,600 shares. The stock ranged in a price between $35.36-$37.94 after having opened the day at $35.36 as compared to the previous trading day's close of $34.97.

Magnetek, Inc. provides digital power control systems to control motion and power primarily in material handling, elevator, and mining applications. Magnetek has a market cap of $118.3 million and is part of the industrial goods sector. Shares are up 39.7% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Magnetek a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Magnetek as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from TheStreet Ratings analysis on MAG go as follows:

  • Compared to other companies in the Electrical Equipment industry and the overall market, MAGNETEK INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MAG 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. To add to this, MAG has a quick ratio of 1.88, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 131.57% and other important driving factors, this stock has surged by 54.54% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MAG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 37.63% is the gross profit margin for MAGNETEK INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.85% is above that of the industry average.

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

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At the close, GreenHunter Resources ( GRH) was up $0.03 (2.2%) to $1.30 on light volume. Throughout the day, 145,039 shares of GreenHunter Resources exchanged hands as compared to its average daily volume of 216,300 shares. The stock ranged in a price between $1.21-$1.37 after having opened the day at $1.25 as compared to the previous trading day's close of $1.27.

GreenHunter Resources, Inc., an environmental services company, provides water management solutions in the United States. It offers Total Water Management Solutions to the oilfield, including unconventional oil and natural gas shale resource plays. GreenHunter Resources has a market cap of $43.9 million and is part of the industrial goods sector. Shares are up 9.5% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate GreenHunter Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates GreenHunter Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on GRH go as follows:

  • 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 Energy Equipment & Services industry. The net income has significantly decreased by 625.9% when compared to the same quarter one year ago, falling from -$0.37 million to -$2.69 million.
  • 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 Energy Equipment & Services industry and the overall market, GREENHUNTER RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • GRH has underperformed the S&P 500 Index, declining 5.31% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • GREENHUNTER RESOURCES INC reported flat earnings per share in the most recent quarter. 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, GREENHUNTER RESOURCES INC continued to lose money by earning -$0.22 versus -$0.81 in the prior year. For the next year, the market is expecting a contraction of 59.1% in earnings (-$0.35 versus -$0.22).
  • The revenue fell significantly faster than the industry average of 15.4%. Since the same quarter one year prior, revenues fell by 19.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.

You can view the full analysis from the report here: GreenHunter Resources 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.

CVD Equipment ( CVV) was another company that pushed the Industrial industry higher today. CVD Equipment was up $0.83 (6.2%) to $14.29 on heavy volume. Throughout the day, 49,417 shares of CVD Equipment exchanged hands as compared to its average daily volume of 19,800 shares. The stock ranged in a price between $13.38-$14.46 after having opened the day at $13.50 as compared to the previous trading day's close of $13.46.

CVD Equipment Corporation designs, develops, and manufactures customized equipment and process solutions used to develop and manufacture solar, nano, and advanced electronic components, materials, and coatings for research and industrial applications in the United States and internationally. CVD Equipment has a market cap of $81.3 million and is part of the industrial goods sector. Shares are down 7.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates CVD Equipment a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CVD Equipment 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on CVV go as follows:

  • CVV's revenue growth has slightly outpaced the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 26.0%. 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.
  • CVV'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. Along with this, the company maintains a quick ratio of 3.24, which clearly demonstrates the ability to cover short-term cash needs.
  • 39.84% is the gross profit margin for CVD EQUIPMENT CORP which we consider to be strong. Regardless of CVV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CVV's net profit margin of 3.30% is significantly lower than the industry average.
  • 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 Semiconductors & Semiconductor Equipment industry and the overall market, CVD EQUIPMENT CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$2.22 million or 73.78% 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: CVD Equipment 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.

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.

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