3 Stocks Pushing The Industrial Goods Sector Lower

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The Industrial Goods sector as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Laggards within the Industrial Goods sector included Bonso Electronics International ( BNSO), down 1.9%, Tecnoglass ( TGLS), down 4.8%, Taylor Devices ( TAYD), down 3.0%, Ecology and Environment ( EEI), down 5.1% and Lime Energy ( LIME), down 4.5%.

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

NCI Building Systems ( NCS) is one of the companies that pushed the Industrial Goods sector lower today. NCI Building Systems was down $0.39 (2.0%) to $18.90 on light volume. Throughout the day, 54,607 shares of NCI Building Systems exchanged hands as compared to its average daily volume of 278,300 shares. The stock ranged in price between $18.88-$19.34 after having opened the day at $19.27 as compared to the previous trading day's close of $19.29.

NCI Building Systems, Inc. manufactures and markets metal products for the nonresidential construction industry in North America. NCI Building Systems has a market cap of $1.4 billion and is part of the materials & construction industry. Shares are up 10.0% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate NCI Building Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates NCI Building Systems as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on NCS go as follows:

  • The revenue growth came in higher than the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 14.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NCI BUILDING SYSTEMS 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. This trend suggests that the performance of the business is improving. During the past fiscal year, NCI BUILDING SYSTEMS INC continued to lose money by earning -$0.55 versus -$4.06 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus -$0.55).
  • 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. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Building Products industry and the overall market, NCI BUILDING SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NCI BUILDING SYSTEMS INC is rather low; currently it is at 24.49%. Regardless of NCS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.68% trails the industry average.

You can view the full analysis from the report here: NCI Building Systems Ratings Report

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At the close, Lime Energy ( LIME) was down $0.15 (4.5%) to $3.22 on average volume. Throughout the day, 20,093 shares of Lime Energy exchanged hands as compared to its average daily volume of 21,100 shares. The stock ranged in price between $3.20-$3.40 after having opened the day at $3.38 as compared to the previous trading day's close of $3.37.

Lime Energy Co. is engaged in designing and implementing energy efficiency programs for utilities in the United States. Lime Energy has a market cap of $11.9 million and is part of the materials & construction industry. Shares are up 16.6% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Lime Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on LIME go as follows:

  • Net operating cash flow has significantly decreased to -$1.21 million or 392.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, LIME has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • The gross profit margin for LIME ENERGY CO is currently lower than what is desirable, coming in at 33.82%. Regardless of LIME's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.27% trails the industry average.
  • 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 Electrical Equipment industry and the overall market, LIME ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • LIME 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. Despite the fact that LIME's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs.

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

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Ecology and Environment ( EEI) was another company that pushed the Industrial Goods sector lower today. Ecology and Environment was down $0.47 (5.1%) to $8.80 on heavy volume. Throughout the day, 11,554 shares of Ecology and Environment exchanged hands as compared to its average daily volume of 4,600 shares. The stock ranged in price between $8.45-$9.14 after having opened the day at $9.08 as compared to the previous trading day's close of $9.27.

Ecology and Environment, Inc., an environmental consulting firm, provides professional services to the government and private sectors worldwide. Ecology and Environment has a market cap of $24.6 million and is part of the materials & construction industry. Shares are down 15.9% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Ecology and Environment as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on EEI go as follows:

  • EEI has underperformed the S&P 500 Index, declining 12.48% 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Services & Supplies industry and the overall market, ECOLOGY AND ENVIRONMENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 42.59% is the gross profit margin for ECOLOGY AND ENVIRONMENT INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.98% trails the industry average.
  • ECOLOGY AND ENVIRONMENT 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 year. During the past fiscal year, ECOLOGY AND ENVIRONMENT INC continued to lose money by earning -$0.32 versus -$0.49 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 82.9% when compared to the same quarter one year prior, rising from -$3.84 million to -$0.66 million.

You can view the full analysis from the report here: Ecology and Environment 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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