3 Stocks Pushing The Wholesale Industry Higher

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.

One out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 5.41 points (0.0%) at 17,746 as of Thursday, July 30, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,569 issues advancing vs. 1,503 declining with 140 unchanged.

The Wholesale industry as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Top gainers within the Wholesale industry included Forward Industries ( FORD), up 1.5%, Bluelinx Holdings ( BXC), up 1.6%, Huttig Building Products ( HBP), up 3.7%, China Auto Logistics ( CALI), up 3.8% and Wayside Technology Group ( WSTG), up 2.2%.

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

Wayside Technology Group ( WSTG) is one of the companies that pushed the Wholesale industry higher today. Wayside Technology Group was up $0.42 (2.2%) to $19.66 on light volume. Throughout the day, 560 shares of Wayside Technology Group exchanged hands as compared to its average daily volume of 5,500 shares. The stock ranged in a price between $19.10-$19.68 after having opened the day at $19.10 as compared to the previous trading day's close of $19.24.

Wayside Technology Group, Inc. operates as an information technology channel company worldwide. It operates through two segments, Lifeboat Distribution and TechXtend. Wayside Technology Group has a market cap of $92.6 million and is part of the services sector. Shares are up 11.8% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Wayside Technology Group a buy, no analysts rate it a sell, and none rate it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates Wayside Technology Group as a buy. 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, solid stock price performance, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on WSTG go as follows:

  • The revenue growth greatly exceeded the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 29.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WSTG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, WSTG has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Electronic Equipment, Instruments & Components industry average. The net income increased by 23.0% when compared to the same quarter one year prior, going from $1.06 million to $1.30 million.
  • Net operating cash flow has significantly increased by 119.50% to $1.53 million when compared to the same quarter last year. In addition, WAYSIDE TECHNOLOGY GROUP INC has also vastly surpassed the industry average cash flow growth rate of -19.12%.

You can view the full analysis from the report here: Wayside Technology Group Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

At the close, China Auto Logistics ( CALI) was up $0.04 (3.8%) to $1.10 on heavy volume. Throughout the day, 237,127 shares of China Auto Logistics exchanged hands as compared to its average daily volume of 40,000 shares. The stock ranged in a price between $0.94-$1.30 after having opened the day at $0.97 as compared to the previous trading day's close of $1.06.

China Auto Logistics Inc. sells and trades in imported automobiles in the People's Republic of China. China Auto Logistics has a market cap of $3.9 million and is part of the services sector. Shares are down 9.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate China Auto Logistics a buy, no analysts rate it a sell, and none rate it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates China Auto Logistics as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CALI go as follows:

  • The debt-to-equity ratio is very high at 5.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.50, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Specialty Retail industry and the overall market, CHINA AUTO LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA AUTO LOGISTICS INC is currently extremely low, coming in at 0.59%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.05% is significantly below that of the industry average.
  • CHINA AUTO LOGISTICS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA AUTO LOGISTICS INC swung to a loss, reporting -$6.66 versus $0.16 in the prior year.
  • 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 Specialty Retail industry. The net income has significantly decreased by 98.1% when compared to the same quarter one year ago, falling from -$1.35 million to -$2.67 million.

You can view the full analysis from the report here: China Auto Logistics Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Bluelinx Holdings ( BXC) was another company that pushed the Wholesale industry higher today. Bluelinx Holdings was up $0.02 (1.6%) to $0.96 on heavy volume. Throughout the day, 94,794 shares of Bluelinx Holdings exchanged hands as compared to its average daily volume of 21,600 shares. The stock ranged in a price between $0.92-$0.99 after having opened the day at $0.94 as compared to the previous trading day's close of $0.94.

Bluelinx Holdings has a market cap of $84.1 million and is part of the services sector. Shares are down 19.0% year-to-date as of the close of trading on Wednesday.

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.

More from Markets

Netflix, Amazon, Jerome Powell, Walmart and Microsoft - 5 Things You Must Know

Netflix, Amazon, Jerome Powell, Walmart and Microsoft - 5 Things You Must Know

Netflix Slumps After Weak Subscriber Growth in 'Strong but not Stellar' Q2

Netflix Slumps After Weak Subscriber Growth in 'Strong but not Stellar' Q2

Stocks Drift, Oil Steadies, Dollar Dips as Investors Question Growth Prospects

Stocks Drift, Oil Steadies, Dollar Dips as Investors Question Growth Prospects

Jerome Powell Heads to Capitol Hill as Market's Best Recession Gauge Blinks Red

Jerome Powell Heads to Capitol Hill as Market's Best Recession Gauge Blinks Red

FCC Rocks Sinclair-Tribune Merger; Arconic Makes Perfect PE Sense -- ICYMI

FCC Rocks Sinclair-Tribune Merger; Arconic Makes Perfect PE Sense -- ICYMI