3 Stocks Pushing The Materials & Construction Industry Lower

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The Materials & Construction industry as a whole closed the day down 1.2% versus the S&P 500, which was down 0.9%. Laggards within the Materials & Construction industry included Avalon Holdings ( AWX), down 5.5%, Integrated Electrical Services ( IESC), down 2.0%, Industrial Services of America ( IDSA), down 3.7%, Skyline ( SKY), down 1.9% and Perma-Fix Environmental Services ( PESI), down 1.8%.

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

Perma-Fix Environmental Services ( PESI) is one of the companies that pushed the Materials & Construction industry lower today. Perma-Fix Environmental Services was down $0.08 (1.8%) to $4.26 on light volume. Throughout the day, 15,653 shares of Perma-Fix Environmental Services exchanged hands as compared to its average daily volume of 25,700 shares. The stock ranged in price between $4.26-$4.50 after having opened the day at $4.30 as compared to the previous trading day's close of $4.34.

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates through two segments, Treatment and Services. Perma-Fix Environmental Services has a market cap of $50.6 million and is part of the industrial goods sector. Shares are down 0.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Perma-Fix Environmental Services a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Perma-Fix Environmental Services as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from TheStreet Ratings analysis on PESI 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, PERMA-FIX ENVIRONMENTAL SVCS's return on equity significantly trails that of both the industry average and the S&P 500.
  • PESI, with its decline in revenue, underperformed when compared the industry average of 8.4%. Since the same quarter one year prior, revenues fell by 11.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • PESI's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.82 is somewhat weak and could be cause for future problems.
  • PERMA-FIX ENVIRONMENTAL SVCS 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, PERMA-FIX ENVIRONMENTAL SVCS reported poor results of -$3.03 versus -$0.30 in the prior year. This year, the market expects an improvement in earnings (-$0.16 versus -$3.03).
  • 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 331.8% when compared to the same quarter one year prior, rising from -$0.81 million to $1.87 million.

You can view the full analysis from the report here: Perma-Fix Environmental Services Ratings Report

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At the close, Industrial Services of America ( IDSA) was down $0.21 (3.7%) to $5.54 on light volume. Throughout the day, 2,171 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 11,600 shares. The stock ranged in price between $5.33-$5.60 after having opened the day at $5.33 as compared to the previous trading day's close of $5.75.

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 $45.4 million and is part of the industrial goods sector. Shares are down 4.3% year-to-date as of the close of trading on Monday.

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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

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Integrated Electrical Services ( IESC) was another company that pushed the Materials & Construction industry lower today. Integrated Electrical Services was down $0.15 (2.0%) to $7.42 on light volume. Throughout the day, 5,474 shares of Integrated Electrical Services exchanged hands as compared to its average daily volume of 7,600 shares. The stock ranged in price between $7.17-$7.54 after having opened the day at $7.23 as compared to the previous trading day's close of $7.57.

Integrated Electrical Services, Inc., through its subsidiaries, provides communications, residential, commercial and industrial, and infrastructure solutions. Integrated Electrical Services has a market cap of $166.0 million and is part of the industrial goods sector. Shares are down 0.4% year-to-date as of the close of trading on Monday.

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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