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The Materials & Construction industry as a whole closed the day down 3.0% versus the S&P 500, which was down 0.9%. Laggards within the Materials & Construction industry included Ecology and Environment ( EEI), down 11.3%, Skyline ( SKY), down 3.4%, Industrial Services of America ( IDSA), down 3.7%, Pope Resources ( POPE), down 1.7% and Real Goods Solar ( RGSE), down 3.9%.

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

Real Goods Solar ( RGSE) is one of the companies that pushed the Materials & Construction industry lower today. Real Goods Solar was down $0.02 (3.9%) to $0.49 on light volume. Throughout the day, 241,173 shares of Real Goods Solar exchanged hands as compared to its average daily volume of 448,900 shares. The stock ranged in price between $0.48-$0.53 after having opened the day at $0.53 as compared to the previous trading day's close of $0.51.

Real Goods Solar, Inc. operates as a residential and commercial solar energy engineering, procurement, and construction company in the United States. It provides commercial and residential solar energy solutions. Real Goods Solar has a market cap of $26.5 million and is part of the industrial goods sector. Shares are up 5.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Real Goods Solar a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Real Goods Solar as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RGSE 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 Electrical Equipment industry. The net income has significantly decreased by 126.8% when compared to the same quarter one year ago, falling from -$2.09 million to -$4.75 million.
  • The gross profit margin for REAL GOODS SOLAR INC is rather low; currently it is at 16.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -25.13% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$6.64 million or 102.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • RGSE's debt-to-equity ratio of 0.68 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.38 is very low and demonstrates very weak liquidity.
  • RGSE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 83.89%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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: Real Goods Solar Ratings Report

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At the close, Industrial Services of America ( IDSA) was down $0.22 (3.7%) to $5.77 on light volume. Throughout the day, 3,195 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 10,600 shares. The stock ranged in price between $5.77-$5.95 after having opened the day at $5.90 as compared to the previous trading day's close of $5.99.

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 $45.7 million and is part of the industrial goods sector. Shares are up 0.3% year-to-date as of the close of trading on Wednesday.

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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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Ecology and Environment ( EEI) was another company that pushed the Materials & Construction industry lower today. Ecology and Environment was down $1.21 (11.3%) to $9.54 on heavy volume. Throughout the day, 27,779 shares of Ecology and Environment exchanged hands as compared to its average daily volume of 5,200 shares. The stock ranged in price between $9.28-$10.83 after having opened the day at $10.70 as compared to the previous trading day's close of $10.75.

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 $25.6 million and is part of the industrial goods sector. Shares are up 5.6% year-to-date as of the close of trading on Wednesday.

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

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Highlights from TheStreet Ratings analysis on EEI go as follows:

  • Net operating cash flow has significantly decreased to -$0.55 million or 136.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • EEI has underperformed the S&P 500 Index, declining 18.52% 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.
  • EEI, with its decline in revenue, underperformed when compared the industry average of 8.4%. Since the same quarter one year prior, revenues slightly dropped by 4.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 44.89% is the gross profit margin for ECOLOGY AND ENVIRONMENT INC which we consider to be strong. Regardless of EEI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.55% trails the industry average.

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.