3 Stocks Pushing The Materials & Construction Industry Lower

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The Materials & Construction industry as a whole closed the day down 1.9% versus the S&P 500, which was down 1.9%. Laggards within the Materials & Construction industry included Avalon Holdings ( AWX), down 1.8%, Integrated Electrical Services ( IESC), down 3.0%, Industrial Services of America ( IDSA), down 7.9%, China Recycling Energy ( CREG), down 3.5% and Pure Cycle ( PCYO), down 2.8%.

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

China Recycling Energy ( CREG) is one of the companies that pushed the Materials & Construction industry lower today. China Recycling Energy was down $0.03 (3.5%) to $0.75 on light volume. Throughout the day, 26,287 shares of China Recycling Energy exchanged hands as compared to its average daily volume of 246,500 shares. The stock ranged in price between $0.75-$0.77 after having opened the day at $0.76 as compared to the previous trading day's close of $0.78.

China Recycling Energy Corporation is engaged in the recycling energy business primarily in the People's Republic of China. China Recycling Energy has a market cap of $62.7 million and is part of the services sector. Shares are unchanged year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates China Recycling Energy as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on CREG go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Services & Supplies industry average. The net income increased by 8.5% when compared to the same quarter one year prior, going from $4.39 million to $4.77 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.70, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.91 is somewhat weak and could be cause for future problems.
  • 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. When compared to other companies in the Commercial Services & Supplies industry and the overall market, CHINA RECYCLING ENERGY CORP's return on equity is below that of both the industry average and the S&P 500.
  • Looking at the price performance of CREG's shares over the past 12 months, there is not much good news to report: the stock is down 78.52%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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

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At the close, Industrial Services of America ( IDSA) was down $0.45 (7.9%) to $5.26 on light volume. Throughout the day, 300 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 11,700 shares. The stock ranged in price between $5.26-$5.26 after having opened the day at $5.26 as compared to the previous trading day's close of $5.71.

Industrial Services of America, Inc. operates as a recycler of stainless steel, ferrous, and non-ferrous scrap. The company operates in two segments, Recycling and Waste Services. Industrial Services of America has a market cap of $47.5 million and is part of the services sector. Shares are unchanged year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Industrial Services of America as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on IDSA go as follows:

  • 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 Commercial Services & Supplies industry and the overall market, INDUSTRIAL SERVICES AMER INC'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 -$0.33 million or 368.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for INDUSTRIAL SERVICES AMER INC is currently extremely low, coming in at 6.84%. Regardless of IDSA'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 0.47% trails the industry average.
  • INDUSTRIAL SERVICES AMER INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, INDUSTRIAL SERVICES AMER INC reported poor results of -$1.96 versus -$0.96 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 107.4% when compared to the same quarter one year prior, rising from -$2.19 million to $0.16 million.

You can view the full analysis from the report here: Industrial Services of America 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.

Integrated Electrical Services ( IESC) was another company that pushed the Materials & Construction industry lower today. Integrated Electrical Services was down $0.23 (3.0%) to $7.40 on average volume. Throughout the day, 10,827 shares of Integrated Electrical Services exchanged hands as compared to its average daily volume of 7,500 shares. The stock ranged in price between $7.10-$7.63 after having opened the day at $7.57 as compared to the previous trading day's close of $7.63.

Integrated Electrical Services, Inc., through its subsidiaries, provides communications, residential, commercial and industrial, and infrastructure solutions. Integrated Electrical Services has a market cap of $166.6 million and is part of the services sector. Shares are down 0.4% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Integrated Electrical Services as a hold. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

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Highlights from TheStreet Ratings analysis on IESC go as follows:

  • The revenue growth came in higher than the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IESC's debt-to-equity ratio is very low at 0.12 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 1.46, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Construction & Engineering industry and the overall market, INTEGRATED ELECTRICAL SVCS's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for INTEGRATED ELECTRICAL SVCS is rather low; currently it is at 16.82%. Regardless of IESC'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 1.56% trails the industry average.

You can view the full analysis from the report here: Integrated Electrical Services 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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