3 Stocks Pushing The Aerospace/Defense Industry Lower

The Aerospace/Defense industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.9%. Laggards within the Aerospace/Defense industry included TAT Technologies ( TATT), down 2.8%, CAE ( CAE), down 2.8%, Ducommun ( DCO), down 3.6%, Freshpet ( FRPT), down 1.6% and Taser International ( TASR), down 3.7%.

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

Freshpet ( FRPT) is one of the companies that pushed the Aerospace/Defense industry lower today. Freshpet was down $0.23 (1.6%) to $14.00 on average volume. Throughout the day, 544,990 shares of Freshpet exchanged hands as compared to its average daily volume of 382,000 shares. The stock ranged in price between $13.76-$14.22 after having opened the day at $14.03 as compared to the previous trading day's close of $14.23.

Freshpet has a market cap of $486.5 million and is part of the industrial goods sector. Shares are down 16.6% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts who rate Freshpet a buy, no analysts rate it a sell, and 1 rates it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

At the close, Ducommun ( DCO) was down $0.90 (3.6%) to $24.01 on light volume. Throughout the day, 47,933 shares of Ducommun exchanged hands as compared to its average daily volume of 71,300 shares. The stock ranged in price between $23.91-$24.94 after having opened the day at $24.80 as compared to the previous trading day's close of $24.91.

Ducommun Incorporated provides engineering and manufacturing products and services primarily to the aerospace, defense, industrial, natural resources, medical, and other industries. The company operates in two segments, Ducommun LaBarge Technologies (DLT) and Ducommun Aerostructures (DAS). Ducommun has a market cap of $281.4 million and is part of the industrial goods sector. Shares are down 1.5% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Ducommun a buy, no analysts rate it a sell, and 3 rate it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates Ducommun as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on DCO go as follows:

  • DCO, with its decline in revenue, underperformed when compared the industry average of 4.9%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Even though the current debt-to-equity ratio is 1.03, it is still below the industry average, suggesting that this level of debt is acceptable within the Aerospace & Defense industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.21 is sturdy.
  • DUCOMMUN 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 company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DUCOMMUN INC increased its bottom line by earning $1.78 versus $1.05 in the prior year. For the next year, the market is expecting a contraction of 42.1% in earnings ($1.03 versus $1.78).
  • The gross profit margin for DUCOMMUN INC is rather low; currently it is at 21.57%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.01% trails that of the industry average.
  • Net operating cash flow has decreased to $14.07 million or 44.24% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

CAE ( CAE) was another company that pushed the Aerospace/Defense industry lower today. CAE was down $0.32 (2.8%) to $11.14 on average volume. Throughout the day, 33,201 shares of CAE exchanged hands as compared to its average daily volume of 37,700 shares. The stock ranged in price between $10.98-$11.30 after having opened the day at $11.24 as compared to the previous trading day's close of $11.46.

CAE Inc., together with its subsidiaries, designs, manufactures, and supplies simulation equipment worldwide. The company operates in three segments: Civil Aviation Training Solutions, Defence and Security, and Healthcare. CAE has a market cap of $3.0 billion and is part of the industrial goods sector. Shares are down 11.9% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate CAE a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates CAE as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Highlights from TheStreet Ratings analysis on CAE go as follows:

  • CAE's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 5.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 6.2% when compared to the same quarter one year prior, going from $41.80 million to $44.40 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.76, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
  • CAE INC reported flat earnings per share in the most recent quarter. 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, CAE INC increased its bottom line by earning $0.77 versus $0.72 in the prior year.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.