3 Stocks Pushing The Chemicals Industry Lower

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The Chemicals industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.5%. Laggards within the Chemicals industry included Ceres ( CERE), down 2.4%, NL Industries ( NL), down 3.6%, BioAmber ( BIOA), down 2.0%, Omnova Solutions ( OMN), down 2.2% and FutureFuel ( FF), down 2.4%.

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

BioAmber ( BIOA) is one of the companies that pushed the Chemicals industry lower today. BioAmber was down $0.16 (2.0%) to $7.84 on light volume. Throughout the day, 28,234 shares of BioAmber exchanged hands as compared to its average daily volume of 47,700 shares. The stock ranged in price between $7.61-$8.06 after having opened the day at $7.83 as compared to the previous trading day's close of $8.00.

BioAmber Inc., an industrial biotechnology company, produces and sells bio-succinic acid to customers in various chemical markets in the United States. BioAmber has a market cap of $169.7 million and is part of the basic materials sector. Shares are down 4.7% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate BioAmber a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on BIOA 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 Chemicals industry and the overall market, BIOAMBER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • BIOA has underperformed the S&P 500 Index, declining 16.34% 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 revenue fell significantly faster than the industry average of 6.8%. Since the same quarter one year prior, revenues fell by 45.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the Chemicals industry average, but is less than that of the S&P 500. The net income increased by 7.6% when compared to the same quarter one year prior, going from -$8.83 million to -$8.16 million.
  • Net operating cash flow has significantly increased by 57.83% to -$2.25 million when compared to the same quarter last year. In addition, BIOAMBER INC has also vastly surpassed the industry average cash flow growth rate of -13.80%.

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

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At the close, NL Industries ( NL) was down $0.27 (3.6%) to $7.25 on light volume. Throughout the day, 6,668 shares of NL Industries exchanged hands as compared to its average daily volume of 15,500 shares. The stock ranged in price between $7.24-$7.49 after having opened the day at $7.49 as compared to the previous trading day's close of $7.52.

NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in the United States and internationally. NL Industries has a market cap of $366.6 million and is part of the basic materials sector. Shares are down 12.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate NL Industries a buy, 1 analyst rates it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on NL go as follows:

  • The gross profit margin for NL INDUSTRIES is currently lower than what is desirable, coming in at 34.22%. It has decreased from the same quarter the previous year. Despite the weak results of the gross profit margin, the net profit margin of 52.46% has significantly outperformed against the industry average.
  • NL'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 36.22%, 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.
  • 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, NL INDUSTRIES's return on equity significantly trails that of both the industry average and the S&P 500.
  • NL INDUSTRIES 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, NL INDUSTRIES swung to a loss, reporting -$1.13 versus $1.16 in the prior year. This year, the market expects an improvement in earnings ($0.55 versus -$1.13).
  • 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 333.8% when compared to the same quarter one year prior, rising from -$5.94 million to $13.89 million.

You can view the full analysis from the report here: NL Industries 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.

Ceres ( CERE) was another company that pushed the Chemicals industry lower today. Ceres was down $0.01 (2.4%) to $0.23 on average volume. Throughout the day, 360,420 shares of Ceres exchanged hands as compared to its average daily volume of 450,200 shares. The stock ranged in price between $0.22-$0.23 after having opened the day at $0.23 as compared to the previous trading day's close of $0.23.

Ceres, Inc., an agricultural biotechnology company, develops and sells energy crops to produce renewable bioenergy feedstocks in North America. Ceres has a market cap of $10.1 million and is part of the basic materials sector. Shares are down 2.6% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Ceres a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Ceres 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on CERE go as follows:

  • Net operating cash flow has decreased to -$6.29 million or 10.87% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, CERES INC has marginally lower results.
  • CERE'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 84.94%, 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.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, CERES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The revenue fell significantly faster than the industry average of 6.5%. Since the same quarter one year prior, revenues fell by 47.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • CERE's debt-to-equity ratio is very low at 0.00 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 5.14, which clearly demonstrates the ability to cover short-term cash needs.

You can view the full analysis from the report here: Ceres 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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