3 Stocks Pushing The Aerospace/Defense Industry Lower

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.

The Aerospace/Defense industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.3%. Laggards within the Aerospace/Defense industry included Rada Electronics Industries ( RADA), down 9.8%, LMI Aerospace ( LMIA), down 1.7%, Ducommun ( DCO), down 2.2% and Taser International ( TASR), down 7.7%.

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

Taser International ( TASR) is one of the companies that pushed the Aerospace/Defense industry lower today. Taser International was down $2.09 (7.7%) to $25.13 on heavy volume. Throughout the day, 3,772,543 shares of Taser International exchanged hands as compared to its average daily volume of 2,329,100 shares. The stock ranged in price between $25.10-$27.08 after having opened the day at $27.03 as compared to the previous trading day's close of $27.22.

TASER International, Inc. develops, manufactures, and sells conducted electrical weapons (CEWs) worldwide. It operates through two segments, TASER Weapons and AXON. Taser International has a market cap of $1.5 billion and is part of the industrial goods sector. Shares are up 2.8% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Taser International a buy, 1 analyst rates it a sell, and 3 rate it a hold.

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TheStreet Ratings rates Taser International 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from TheStreet Ratings analysis on TASR go as follows:

  • The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 25.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TASR'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 3.55, which clearly demonstrates the ability to cover short-term cash needs.
  • TASER INTERNATIONAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TASER INTERNATIONAL INC increased its bottom line by earning $0.36 versus $0.34 in the prior year. This year, the market expects an improvement in earnings ($0.49 versus $0.36).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 57.1% when compared to the same quarter one year prior, rising from $3.88 million to $6.10 million.
  • The gross profit margin for TASER INTERNATIONAL INC is rather high; currently it is at 65.77%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.06% is above that of the industry average.

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

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