3 Stocks Improving Performance Of The Industrial Industry

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 15.93 points (-0.1%) at 17,529 as of Tuesday, Aug. 18, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 984 issues advancing vs. 2,001 declining with 166 unchanged.

The Industrial industry as a whole closed the day down 0.7% versus the S&P 500, which was down 0.2%. Top gainers within the Industrial industry included American DG Energy ( ADGE), up 4.3%, WSI Industries ( WSCI), up 8.2%, UQM Technologies ( UQM), up 15.3%, GreenHunter Resources ( GRH), up 7.4% and Art's-Way Manufacturing ( ARTW), up 1.8%.

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

Art's-Way Manufacturing ( ARTW) is one of the companies that pushed the Industrial industry higher today. Art's-Way Manufacturing was up $0.08 (1.8%) to $4.49 on light volume. Throughout the day, 2,934 shares of Art's-Way Manufacturing exchanged hands as compared to its average daily volume of 17,700 shares. The stock ranged in a price between $4.44-$4.52 after having opened the day at $4.46 as compared to the previous trading day's close of $4.41.

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, pressurized steel vessels, and steel cutting tools worldwide. Art's-Way Manufacturing has a market cap of $18.4 million and is part of the industrial goods sector. Shares are down 15.3% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Art's-Way Manufacturing a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Art's-Way Manufacturing as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, a generally disappointing performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on ARTW go as follows:

  • Net operating cash flow has significantly increased by 137.11% to $0.23 million when compared to the same quarter last year. In addition, ARTS WAY MFG INC has also vastly surpassed the industry average cash flow growth rate of -10.33%.
  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • ARTW has underperformed the S&P 500 Index, declining 19.64% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ARTS WAY MFG INC 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, ARTS WAY MFG INC reported lower earnings of $0.23 versus $0.38 in the prior year.

You can view the full analysis from the report here: Art's-Way Manufacturing Ratings Report

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At the close, GreenHunter Resources ( GRH) was up $0.04 (7.4%) to $0.58 on average volume. Throughout the day, 70,211 shares of GreenHunter Resources exchanged hands as compared to its average daily volume of 77,700 shares. The stock ranged in a price between $0.53-$0.58 after having opened the day at $0.53 as compared to the previous trading day's close of $0.54.

GreenHunter Resources, Inc. provides water management solutions in the United States. It offers water solutions for the unconventional oil and natural gas shale resource plays. GreenHunter Resources has a market cap of $20.0 million and is part of the industrial goods sector. Shares are down 25.0% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates GreenHunter Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates GreenHunter Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on GRH 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 Energy Equipment & Services industry and the overall market, GREENHUNTER RESOURCES INC'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 -$0.13 million or 109.98% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for GREENHUNTER RESOURCES INC is currently lower than what is desirable, coming in at 34.02%. Regardless of GRH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, GRH's net profit margin of -28.36% significantly underperformed when compared to the industry average.
  • GRH'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 73.37%, 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 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 Energy Equipment & Services industry average. The net income has decreased by 5.2% when compared to the same quarter one year ago, dropping from -$1.39 million to -$1.46 million.

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

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UQM Technologies ( UQM) was another company that pushed the Industrial industry higher today. UQM Technologies was up $0.09 (15.3%) to $0.66 on heavy volume. Throughout the day, 229,024 shares of UQM Technologies exchanged hands as compared to its average daily volume of 62,000 shares. The stock ranged in a price between $0.58-$0.66 after having opened the day at $0.59 as compared to the previous trading day's close of $0.57.

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 $23.9 million and is part of the industrial goods sector. Shares are down 26.7% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates UQM Technologies a buy, no analysts rate it a sell, and none rate it a hold.

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 63.47%, 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 5.3%. 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.
  • 43.55% is the gross profit margin for UQM TECHNOLOGIES INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, UQM's net profit margin of -116.34% significantly underperformed when compared to the industry average.

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

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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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