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The Conglomerates sector as a whole closed the day down 1.7% versus the S&P 500, which was down 1.3%. Laggards within the Conglomerates sector included Tecnoglass ( TGLS), down 2.0%, Quartet Merger ( QTET), down 2.1%, Rare Element Resources ( REE), down 5.1%, MGT Capital Investments ( MGT), down 7.1% and Terrapin 3 Acquisition ( TRTL), down 1.8%.

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

Global Eagle Entertainment ( ENT) is one of the companies that pushed the Conglomerates sector lower today. Global Eagle Entertainment was down $0.35 (2.2%) to $15.19 on average volume. Throughout the day, 344,194 shares of Global Eagle Entertainment exchanged hands as compared to its average daily volume of 361,100 shares. The stock ranged in price between $15.10-$15.60 after having opened the day at $15.59 as compared to the previous trading day's close of $15.54.

Global Eagle Entertainment Inc., a content and connectivity distribution and services company, provides in-flight video content, e-commerce, and information services for the airline industry worldwide. The company operates through two segments, Connectivity and Content. Global Eagle Entertainment has a market cap of $1.2 billion and is part of the media industry. Shares are up 15.3% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts who rate Global Eagle Entertainment a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Global Eagle Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ENT 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 Media industry. The net income has significantly decreased by 179.7% when compared to the same quarter one year ago, falling from -$5.55 million to -$15.53 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market, GLOBAL EAGLE ENTERTAINMENT's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GLOBAL EAGLE ENTERTAINMENT is currently lower than what is desirable, coming in at 29.26%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -15.13% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $0.86 million or 53.66% 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 share price of GLOBAL EAGLE ENTERTAINMENT has not done very well: it is down 7.93% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

You can view the full analysis from the report here: Global Eagle Entertainment Ratings Report

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At the close, Rare Element Resources ( REE) was down $0.02 (5.1%) to $0.28 on average volume. Throughout the day, 174,541 shares of Rare Element Resources exchanged hands as compared to its average daily volume of 146,700 shares. The stock ranged in price between $0.26-$0.30 after having opened the day at $0.30 as compared to the previous trading day's close of $0.30.

Rare Element Resources has a market cap of $14.3 million and is part of the media industry. Shares are down 22.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Rare Element Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

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Tecnoglass ( TGLS) was another company that pushed the Conglomerates sector lower today. Tecnoglass was down $0.20 (2.0%) to $9.92 on light volume. Throughout the day, 1,045 shares of Tecnoglass exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in price between $9.92-$10.30 after having opened the day at $10.30 as compared to the previous trading day's close of $10.12.

Tecnoglass has a market cap of $246.0 million and is part of the media industry. Shares are down 0.3% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Tecnoglass a buy, no analysts rate it a sell, and none rate it a hold.

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