The Industrial Goods sector as a whole closed the day down 1.0% versus the S&P 500, which was down 1.0%. Laggards within the Industrial Goods sector included Bonso Electronics International ( BNSO), down 5.5%, THT Heat Transfer Technology ( THTI), down 12.6%, India Globalization Capital ( IGC), down 18.0%, Intelligent Systems ( INS), down 3.8% and Cleantech Solutions International ( CLNT), down 3.5%.

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

ABB ( ABB) is one of the companies that pushed the Industrial Goods sector lower today. ABB was down $0.46 (2.2%) to $20.35 on average volume. Throughout the day, 1,993,370 shares of ABB exchanged hands as compared to its average daily volume of 2,079,900 shares. The stock ranged in price between $20.31-$20.55 after having opened the day at $20.52 as compared to the previous trading day's close of $20.81.

ABB Ltd provides power and automation technologies for utility and industrial customers worldwide. ABB has a market cap of $45.5 billion and is part of the industrial industry. Shares are down 1.6% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates ABB a buy, 1 analyst rates it a sell, and 3 rate it a hold.

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TheStreet Ratings rates ABB 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, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on ABB go as follows:

  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electrical Equipment industry and the overall market on the basis of return on equity, ABB LTD has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 14.4%. Since the same quarter one year prior, revenues fell by 10.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for ABB LTD is currently lower than what is desirable, coming in at 32.88%. Regardless of ABB'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 6.41% trails the industry average.

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

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At the close, India Globalization Capital ( IGC) was down $0.05 (18.0%) to $0.21 on heavy volume. Throughout the day, 69,840 shares of India Globalization Capital exchanged hands as compared to its average daily volume of 30,900 shares. The stock ranged in price between $0.19-$0.27 after having opened the day at $0.26 as compared to the previous trading day's close of $0.26.

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 $2.9 million and is part of the industrial industry. Shares are down 62.0% year-to-date as of the close of trading on Monday.

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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 70.74%, 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

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THT Heat Transfer Technology ( THTI) was another company that pushed the Industrial Goods sector lower today. THT Heat Transfer Technology was down $0.08 (12.6%) to $0.59 on light volume. Throughout the day, 3,442 shares of THT Heat Transfer Technology exchanged hands as compared to its average daily volume of 8,000 shares. The stock ranged in price between $0.59-$0.77 after having opened the day at $0.77 as compared to the previous trading day's close of $0.67.

THT Heat Transfer Technology, Inc., through its subsidiaries, manufactures and trades in plate heat exchangers and various related products in the People's Republic of China. THT Heat Transfer Technology has a market cap of $10.8 million and is part of the industrial industry. Shares are down 45.2% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates THT Heat Transfer Technology as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on THTI go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 90.0% when compared to the same quarter one year prior, rising from $0.48 million to $0.91 million.
  • THTI'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 1.26, which illustrates the ability to avoid short-term cash problems.
  • Despite the weak revenue results, THTI has outperformed against the industry average of 15.1%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for THT HEAT TRANSFER TECH INC is currently lower than what is desirable, coming in at 32.79%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 11.18% is above that of the industry average.
  • 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. In comparison to the other companies in the Machinery industry and the overall market, THT HEAT TRANSFER TECH INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: THT Heat Transfer Technology Ratings Report

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