3 Stocks Pushing The Conglomerates Sector Lower

The Conglomerates sector as a whole closed the day down 1.1% versus the S&P 500, which was down 0.8%. Laggards within the Conglomerates sector included MGT Capital Investments ( MGT), down 6.1%, Rare Element Resources ( REE), down 2.7%, Glori Energy ( GLRI), down 2.4%, Jason Industries ( JASN), down 6.0% and Dex Media ( DXM), down 20.4%.

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

Jason Industries ( JASN) is one of the companies that pushed the Conglomerates sector lower today. Jason Industries was down $0.35 (6.0%) to $5.47 on light volume. Throughout the day, 27,920 shares of Jason Industries exchanged hands as compared to its average daily volume of 50,300 shares. The stock ranged in price between $5.45-$5.90 after having opened the day at $5.87 as compared to the previous trading day's close of $5.82.

Jason Industries, Inc., together with its subsidiaries, engages in the manufacture of seating, finishing, acoustics, and components in the United States and internationally. Jason Industries has a market cap of $121.8 million and is part of the conglomerates industry. Shares are down 40.9% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Jason Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Jason Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on JASN go as follows:

  • 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 Machinery industry. The net income has significantly decreased by 113.7% when compared to the same quarter one year ago, falling from $5.24 million to -$0.72 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 Machinery industry and the overall market, JASON INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 2.97 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, JASN's quick ratio is somewhat strong at 1.11, demonstrating the ability to handle short-term liquidity needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.63%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 129.16% 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.
  • The gross profit margin for JASON INDUSTRIES INC is currently lower than what is desirable, coming in at 28.31%. Regardless of JASN'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 -0.38% trails the industry average.

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

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At the close, Glori Energy ( GLRI) was down $0.04 (2.4%) to $1.42 on light volume. Throughout the day, 32,897 shares of Glori Energy exchanged hands as compared to its average daily volume of 99,700 shares. The stock ranged in price between $1.36-$1.44 after having opened the day at $1.42 as compared to the previous trading day's close of $1.45.

Glori Energy Inc., an energy technology and oil production company, provides services to third party oil companies. The company operates through AERO Services, and Oil and Gas segments. Glori Energy has a market cap of $47.1 million and is part of the conglomerates industry. Shares are down 65.3% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Glori Energy a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Glori Energy as a sell. Among the areas we feel are negative, one of the most important has been generally deteriorating net income.

Highlights from TheStreet Ratings analysis on GLRI go as follows:

  • 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 Energy Equipment & Services industry. The net income has significantly decreased by 336.3% when compared to the same quarter one year ago, falling from -$0.68 million to -$2.98 million.
  • GLORI ENERGY 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. This year, the market expects an improvement in earnings (-$0.33 versus -$0.61).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 81.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter.
  • Compared to other companies in the Energy Equipment & Services industry and the overall market, GLORI ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The current debt-to-equity ratio, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 6.41, which clearly demonstrates the ability to cover short-term cash needs.

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

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Rare Element Resources ( REE) was another company that pushed the Conglomerates sector lower today. Rare Element Resources was down $0.01 (2.7%) to $0.36 on light volume. Throughout the day, 65,060 shares of Rare Element Resources exchanged hands as compared to its average daily volume of 100,100 shares. The stock ranged in price between $0.35-$0.38 after having opened the day at $0.36 as compared to the previous trading day's close of $0.37.

Rare Element Resources has a market cap of $19.9 million and is part of the conglomerates industry. Shares are down 2.6% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Rare Element Resources a buy, no analysts rate it a sell, and none rate it a hold.

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