3 Stocks Pushing The Chemicals Industry Lower

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The Chemicals industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.4%. Laggards within the Chemicals industry included Lightbridge ( LTBR), down 4.3%, Ceres ( CERE), down 3.0%, NL Industries ( NL), down 3.5%, Amyris ( AMRS), down 5.8% and KMG Chemicals ( KMG), down 1.9%.

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

Amyris ( AMRS) is one of the companies that pushed the Chemicals industry lower today. Amyris was down $0.11 (5.8%) to $1.78 on average volume. Throughout the day, 174,263 shares of Amyris exchanged hands as compared to its average daily volume of 181,100 shares. The stock ranged in price between $1.78-$1.86 after having opened the day at $1.86 as compared to the previous trading day's close of $1.89.

Amyris, Inc., a renewable products company, provides various alternatives to a range of petroleum-sourced products for the specialty chemical and transportation fuel markets worldwide. Amyris has a market cap of $151.0 million and is part of the basic materials sector. Shares are down 7.3% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Amyris a buy, no analysts rate it a sell, and 3 rate it a hold.

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

Highlights from TheStreet Ratings analysis on AMRS go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 51.4% when compared to the same quarter one year ago, falling from -$24.20 million to -$36.64 million.
  • Net operating cash flow has decreased to -$28.28 million or 17.07% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, AMYRIS INC has marginally lower results.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.20%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 43.75% compared to 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.
  • AMYRIS INC's earnings per share declined by 43.8% 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, AMYRIS INC continued to lose money by earning -$3.10 versus -$3.75 in the prior year. This year, the market expects an improvement in earnings (-$1.07 versus -$3.10).
  • The gross profit margin for AMYRIS INC is rather high; currently it is at 61.13%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -224.22% is in-line with the industry average.

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

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At the close, NL Industries ( NL) was down $0.27 (3.5%) to $7.55 on average volume. Throughout the day, 12,888 shares of NL Industries exchanged hands as compared to its average daily volume of 15,600 shares. The stock ranged in price between $7.50-$7.84 after having opened the day at $7.78 as compared to the previous trading day's close of $7.82.

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 $368.0 million and is part of the basic materials sector. Shares are down 9.1% year-to-date as of the close of trading on Friday. 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 26.32%, 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

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Ceres ( CERE) was another company that pushed the Chemicals industry lower today. Ceres was down $0.01 (3.0%) to $0.20 on light volume. Throughout the day, 166,365 shares of Ceres exchanged hands as compared to its average daily volume of 491,400 shares. The stock ranged in price between $0.19-$0.21 after having opened the day at $0.20 as compared to the previous trading day's close of $0.20.

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 $10.6 million and is part of the basic materials sector. Shares are down 16.3% year-to-date as of the close of trading on Friday. 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 generally disappointing historical performance in the stock itself and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on CERE go as follows:

  • 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 83.95%, 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.
  • Net operating cash flow has decreased to -$6.29 million or 10.87% when compared to the same quarter last year. Despite a decrease in cash flow of 10.87%, CERES INC is in line with the industry average cash flow growth rate of -16.81%.
  • 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.
  • CERE, with its decline in revenue, underperformed when compared the industry average of 21.4%. 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.