3 Stocks Pushing The Industrial Industry Lower

The Industrial industry as a whole closed the day down 0.2% versus the S&P 500, which was down 0.3%. Laggards within the Industrial industry included Asia Pacific Wire & Cable ( APWC), down 4.0%, NF Energy Saving ( NFEC), down 14.4%, Cleantech Solutions International ( CLNT), down 13.9%, WSI Industries ( WSCI), down 6.8% and UQM Technologies ( UQM), down 1.7%.

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

Mueller Industries ( MLI) is one of the companies that pushed the Industrial industry lower today. Mueller Industries was down $0.54 (1.7%) to $31.71 on average volume. Throughout the day, 197,639 shares of Mueller Industries exchanged hands as compared to its average daily volume of 160,900 shares. The stock ranged in price between $31.64-$32.20 after having opened the day at $32.00 as compared to the previous trading day's close of $32.25.

Mueller Industries, Inc. manufactures and sells plumbing, heating, ventilation, and air-conditioning products, as well as refrigeration and industrial products in the United States, Canada, Mexico, Great Britain, and China. Mueller Industries has a market cap of $1.8 billion and is part of the industrial goods sector. Shares are down 5.5% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Mueller Industries as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on MLI go as follows:

  • MLI's debt-to-equity ratio is very low at 0.27 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 2.90, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 313.56% to $13.26 million when compared to the same quarter last year. In addition, MUELLER INDUSTRIES has also vastly surpassed the industry average cash flow growth rate of -10.35%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 15.1%. Since the same quarter one year prior, revenues fell by 14.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • MUELLER INDUSTRIES' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, MUELLER INDUSTRIES reported lower earnings of $1.80 versus $3.06 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus $1.80).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Machinery industry average. The net income has decreased by 4.0% when compared to the same quarter one year ago, dropping from $35.05 million to $33.65 million.

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

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At the close, UQM Technologies ( UQM) was down $0.01 (1.7%) to $0.59 on heavy volume. Throughout the day, 96,503 shares of UQM Technologies exchanged hands as compared to its average daily volume of 55,700 shares. The stock ranged in price between $0.54-$0.63 after having opened the day at $0.63 as compared to the previous trading day's close of $0.60.

UQM Technologies, Inc. develops, manufactures, and sells electric motors, generators, and power electronic controllers in the United states and internationally. UQM Technologies has a market cap of $26.0 million and is part of the industrial goods sector. Shares are down 23.2% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates UQM Technologies a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates UQM Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on UQM go as follows:

  • 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 Auto Components industry and the overall market, UQM TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • UQM'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 55.31%, 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 Auto Components industry average, but is greater than that of the S&P 500. The net income increased by 4.4% when compared to the same quarter one year prior, going from -$1.38 million to -$1.32 million.
  • The revenue fell significantly faster than the industry average of 7.7%. Since the same quarter one year prior, revenues fell by 45.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • UQM TECHNOLOGIES INC has improved earnings per share by 25.0% 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, UQM TECHNOLOGIES INC reported poor results of -$0.14 versus -$0.07 in the prior year.

You can view the full analysis from the report here: UQM Technologies Ratings Report

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NF Energy Saving ( NFEC) was another company that pushed the Industrial industry lower today. NF Energy Saving was down $0.20 (14.4%) to $1.19 on heavy volume. Throughout the day, 12,180 shares of NF Energy Saving exchanged hands as compared to its average daily volume of 8,000 shares. The stock ranged in price between $1.13-$1.33 after having opened the day at $1.33 as compared to the previous trading day's close of $1.39.

NF Energy Saving Corporation, through its subsidiaries, is engaged in the production of heavy industrial components and products in the People's Republic of China. It operates through two segments, Heavy Manufacturing Business and Energy-saving Related Business. NF Energy Saving has a market cap of $9.1 million and is part of the industrial goods sector. Shares are down 12.6% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates NF Energy Saving as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on NFEC go as follows:

  • 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. Compared to other companies in the Machinery industry and the overall market, NF ENERGY SAVING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.87 million or 66.47% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • NF ENERGY SAVING CORP reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, NF ENERGY SAVING CORP reported poor results of -$0.11 versus -$0.03 in the prior year.
  • NFEC'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 43.60%, which is also worse than the performance of the S&P 500 Index. 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.
  • NFEC, with its decline in revenue, underperformed when compared the industry average of 15.1%. Since the same quarter one year prior, revenues fell by 32.5%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.

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

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