3 Materials & Construction Stocks Driving The Industry Higher

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 56 points (0.3%) at 17,533 as of Monday, Aug. 17, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,658 issues advancing vs. 1,301 declining with 196 unchanged.

The Materials & Construction industry as a whole closed the day up 0.6% versus the S&P 500, which was up 0.3%. Top gainers within the Materials & Construction industry included China Ceramics ( CCCL), up 6.5%, China Recycling Energy ( CREG), up 7.8%, Goldfield ( GV), up 5.4%, James Hardie Industries ( JHX), up 1.9% and Aspen Aerogels ( ASPN), up 7.1%.

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

James Hardie Industries ( JHX) is one of the companies that pushed the Materials & Construction industry higher today. James Hardie Industries was up $1.23 (1.9%) to $67.18 on average volume. Throughout the day, 4,755 shares of James Hardie Industries exchanged hands as compared to its average daily volume of 3,600 shares. The stock ranged in a price between $66.67-$67.18 after having opened the day at $66.67 as compared to the previous trading day's close of $65.95.

James Hardie Industries has a market cap of $6.0 billion and is part of the industrial goods sector. Shares are up 21.2% year-to-date as of the close of trading on Friday.

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At the close, China Recycling Energy ( CREG) was up $0.06 (7.8%) to $0.83 on light volume. Throughout the day, 42,036 shares of China Recycling Energy exchanged hands as compared to its average daily volume of 59,800 shares. The stock ranged in a price between $0.78-$0.84 after having opened the day at $0.84 as compared to the previous trading day's close of $0.77.

China Recycling Energy Corporation engages in the recycling energy business in China. It designs, finances, constructs, operates, and transfers waste energy recycling projects to mid- to large-size enterprises involved in high energy-consuming businesses. China Recycling Energy has a market cap of $62.3 million and is part of the industrial goods sector. Shares are up 2.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate China Recycling Energy a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates China Recycling Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on CREG go as follows:

  • CREG's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, CREG has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
  • CHINA RECYCLING ENERGY CORP reported flat earnings per share in the most recent quarter. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, CHINA RECYCLING ENERGY CORP's EPS of $0.29 remained unchanged from the prior years' EPS of $0.29.
  • CREG'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 46.81%, 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.
  • 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. When compared to other companies in the Commercial Services & Supplies industry and the overall market, CHINA RECYCLING ENERGY CORP's return on equity is below that of both the industry average and the S&P 500.

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

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China Ceramics ( CCCL) was another company that pushed the Materials & Construction industry higher today. China Ceramics was up $0.06 (6.5%) to $0.99 on light volume. Throughout the day, 1,906 shares of China Ceramics exchanged hands as compared to its average daily volume of 38,100 shares. The stock ranged in a price between $0.98-$0.99 after having opened the day at $0.98 as compared to the previous trading day's close of $0.93.

China Ceramics has a market cap of $18.4 million and is part of the industrial goods sector. Shares are up 14.8% year-to-date as of the close of trading on Friday.

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.

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