3 Stocks Driving The Industrial Goods Sector 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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 47.51 points (-0.3%) at 17,551 as of Tuesday, Aug. 4, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,368 issues advancing vs. 1,676 declining with 154 unchanged.

The Industrial Goods sector as a whole closed the day down 0.3% versus the S&P 500, which was down 0.2%. Top gainers within the Industrial Goods sector included India Globalization Capital ( IGC), up 6.0%, Comstock ( CHCI), up 14.7%, TAT Technologies ( TATT), up 4.5%, Intelligent Systems ( INS), up 2.8% and American Electric Technologies ( AETI), up 5.1%.

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

American Electric Technologies ( AETI) is one of the companies that pushed the Industrial Goods sector higher today. American Electric Technologies was up $0.23 (5.1%) to $4.73 on light volume. Throughout the day, 1,524 shares of American Electric Technologies exchanged hands as compared to its average daily volume of 4,300 shares. The stock ranged in a price between $4.27-$4.75 after having opened the day at $4.57 as compared to the previous trading day's close of $4.50.

American Electric Technologies, Inc. provides power delivery solutions to the energy industry in the United States and internationally. The company operates through two segments, the Technical Products and Services (TP&S) and the Electrical and Instrumentation Construction (E&I). American Electric Technologies has a market cap of $36.5 million and is part of the materials & construction industry. Shares are down 18.6% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate American Electric Technologies 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 American Electric Technologies as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on AETI go as follows:

  • AETI's debt-to-equity ratio is very low at 0.16 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 1.33, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 78.20% to -$0.47 million when compared to the same quarter last year. In addition, AMERICAN ELECTRIC TECH INC has also vastly surpassed the industry average cash flow growth rate of -25.43%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.4%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 Electrical Equipment industry. The net income has significantly decreased by 52.8% when compared to the same quarter one year ago, falling from $0.58 million to $0.27 million.
  • 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 Electrical Equipment industry and the overall market, AMERICAN ELECTRIC TECH INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: American Electric Technologies 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, Comstock ( CHCI) was up $0.06 (14.7%) to $0.50 on light volume. Throughout the day, 1,392 shares of Comstock exchanged hands as compared to its average daily volume of 21,400 shares. The stock ranged in a price between $0.45-$0.50 after having opened the day at $0.45 as compared to the previous trading day's close of $0.44.

Comstock Holding Companies, Inc. operates as a real estate development and construction services company in the United States. The company operates through three segments: Homebuilding, Multi-Family, and Real Estate Services. Comstock has a market cap of $9.1 million and is part of the materials & construction industry. Shares are down 57.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Comstock 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 Comstock as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CHCI go as follows:

  • The gross profit margin for COMSTOCK HOLDING COS INC is rather low; currently it is at 15.14%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -9.14% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$3.78 million or 45.69% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • CHCI'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 62.40%, 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 company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Household Durables industry average, but is greater than that of the S&P 500. The net income increased by 40.3% when compared to the same quarter one year prior, rising from -$1.58 million to -$0.94 million.
  • COMSTOCK HOLDING COS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, COMSTOCK HOLDING COS INC reported poor results of -$0.32 versus -$0.10 in the prior year.

You can view the full analysis from the report here: Comstock 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.

India Globalization Capital ( IGC) was another company that pushed the Industrial Goods sector higher today. India Globalization Capital was up $0.01 (6.0%) to $0.25 on light volume. Throughout the day, 19,655 shares of India Globalization Capital exchanged hands as compared to its average daily volume of 29,300 shares. The stock ranged in a price between $0.24-$0.28 after having opened the day at $0.24 as compared to the previous trading day's close of $0.24.

India Globalization Capital, Inc., through its subsidiaries, engages in trading electronics; and the rental of heavy equipment in Hong Kong and India. India Globalization Capital has a market cap of $4.2 million and is part of the materials & construction industry. Shares are down 64.9% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate India Globalization Capital a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates India Globalization Capital 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 and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IGC go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Electronic Equipment, Instruments & Components industry average. The net income has significantly decreased by 31.0% when compared to the same quarter one year ago, falling from -$1.46 million to -$1.92 million.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, INDIA GLOBALIZATION CAPITAL's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INDIA GLOBALIZATION CAPITAL is currently extremely low, coming in at 5.41%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -85.01% is significantly below that of the industry average.
  • IGC'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 71.85%, 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.
  • IGC's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.74 is somewhat weak and could be cause for future problems.

You can view the full analysis from the report here: India Globalization Capital 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.

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

Video: Jim Cramer on Netflix, Disney, Intel, Micron and Goldman Sachs

Video: Jim Cramer on Netflix, Disney, Intel, Micron and Goldman Sachs

Jim Cramer Weighs In on Intel CEO Resignation

Jim Cramer Weighs In on Intel CEO Resignation

Stocks Tumble as Dow Heads for Eighth Straight Drop

Stocks Tumble as Dow Heads for Eighth Straight Drop

Jim Cramer: I Think Deregulation Will Produce Very Good Earnings for Banks

Jim Cramer: I Think Deregulation Will Produce Very Good Earnings for Banks

Jim Cramer on Micron: Listen to the Conference Call

Jim Cramer on Micron: Listen to the Conference Call