3 Stocks Improving Performance Of The Industrial Industry

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 110 points (0.6%) at 17,972 as of Thursday, Feb. 12, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,425 issues advancing vs. 677 declining with 121 unchanged.

The Industrial industry as a whole closed the day up 1.5% versus the S&P 500, which was up 1.0%. Top gainers within the Industrial industry included Euro Tech Holdings ( CLWT), up 3.7%, Intelligent Systems ( INS), up 5.0%, THT Heat Transfer Technology ( THTI), up 13.4%, Lime Energy ( LIME), up 5.5% and Art's-Way Manufacturing ( ARTW), up 3.6%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Art's-Way Manufacturing ( ARTW) is one of the companies that pushed the Industrial industry higher today. Art's-Way Manufacturing was up $0.17 (3.6%) to $4.86 on heavy volume. Throughout the day, 23,438 shares of Art's-Way Manufacturing exchanged hands as compared to its average daily volume of 5,700 shares. The stock ranged in a price between $4.52-$4.86 after having opened the day at $4.55 as compared to the previous trading day's close of $4.69.

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, pressurized steel vessels, and steel cutting tools worldwide. Art's-Way Manufacturing has a market cap of $19.5 million and is part of the industrial goods sector. Shares are down 7.5% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Art's-Way Manufacturing a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Art's-Way Manufacturing as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on ARTW go as follows:

  • The revenue growth came in higher than the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 100.0% when compared to the same quarter one year prior, rising from $0.19 million to $0.38 million.
  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that ARTW's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs.
  • ARTW has underperformed the S&P 500 Index, declining 19.29% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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. In comparison to the other companies in the Machinery industry and the overall market, ARTS WAY MFG INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: Art's-Way Manufacturing Ratings Report

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At the close, Lime Energy ( LIME) was up $0.14 (5.5%) to $2.69 on light volume. Throughout the day, 1,616 shares of Lime Energy exchanged hands as compared to its average daily volume of 10,100 shares. The stock ranged in a price between $2.58-$2.69 after having opened the day at $2.59 as compared to the previous trading day's close of $2.55.

Lime Energy Co. is engaged in designing and implementing energy efficiency programs for utilities in the United States. Lime Energy has a market cap of $24.0 million and is part of the industrial goods sector. Shares are down 13.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Lime Energy a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Lime Energy 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 poor profit margins.

Highlights from TheStreet Ratings analysis on LIME go as follows:

  • LIME has underperformed the S&P 500 Index, declining 5.56% 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 gross profit margin for LIME ENERGY CO is currently lower than what is desirable, coming in at 32.26%. Regardless of LIME'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 0.57% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, LIME ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • LIME'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. Despite the fact that LIME's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs.
  • Net operating cash flow has significantly increased by 97.22% to -$0.04 million when compared to the same quarter last year. In addition, LIME ENERGY CO has also vastly surpassed the industry average cash flow growth rate of -44.87%.

You can view the full analysis from the report here: Lime Energy 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.

THT Heat Transfer Technology ( THTI) was another company that pushed the Industrial industry higher today. THT Heat Transfer Technology was up $0.13 (13.4%) to $1.10 on average volume. Throughout the day, 18,670 shares of THT Heat Transfer Technology exchanged hands as compared to its average daily volume of 19,400 shares. The stock ranged in a price between $1.00-$1.17 after having opened the day at $1.00 as compared to the previous trading day's close of $0.97.

THT Heat Transfer Technology, Inc., through its subsidiaries, manufactures and trades in plate heat exchangers and various related products in the People's Republic of China. THT Heat Transfer Technology has a market cap of $20.7 million and is part of the industrial goods sector. Shares are down 20.7% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate THT Heat Transfer Technology a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates THT Heat Transfer Technology as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on THTI go as follows:

  • The revenue growth came in higher than the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 15.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • THTI's debt-to-equity ratio is very low at 0.10 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 1.11, which illustrates the ability to avoid short-term cash problems.
  • THT HEAT TRANSFER TECH INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, THT HEAT TRANSFER TECH INC's EPS of $0.15 remained unchanged from the prior years' EPS of $0.15.
  • 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. In comparison to the other companies in the Machinery industry and the overall market, THT HEAT TRANSFER TECH INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: THT Heat Transfer Technology 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.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.