3 Stocks Pushing The Materials & Construction Industry Lower

The Materials & Construction industry as a whole closed the day down 1.9% versus the S&P 500, which was down 1.7%. Laggards within the Materials & Construction industry included Comstock ( CHCI), down 8.2%, Industrial Services of America ( IDSA), down 4.1%, Skyline ( SKY), down 1.8%, China Ceramics ( CCCL), down 4.5% and China Recycling Energy ( CREG), down 9.0%.

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

China Ceramics ( CCCL) is one of the companies that pushed the Materials & Construction industry lower today. China Ceramics was down $0.04 (4.5%) to $0.85 on light volume. Throughout the day, 6,831 shares of China Ceramics exchanged hands as compared to its average daily volume of 36,600 shares. The stock ranged in price between $0.85-$0.89 after having opened the day at $0.86 as compared to the previous trading day's close of $0.89.

China Ceramics has a market cap of $20.2 million and is part of the industrial goods sector. Shares are up 9.9% year-to-date as of the close of trading on Thursday.

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At the close, Industrial Services of America ( IDSA) was down $0.15 (4.1%) to $3.53 on light volume. Throughout the day, 100 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 3,200 shares. The stock ranged in price between $3.53-$3.53 after having opened the day at $3.53 as compared to the previous trading day's close of $3.68.

Industrial Services of America, Inc. operates as a recycler of stainless steel, ferrous, and non-ferrous scrap in the United States and Canada. It operates in two segments, Recycling and Waste Services. Industrial Services of America has a market cap of $29.9 million and is part of the industrial goods sector. Shares are down 38.4% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Industrial Services of America as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IDSA go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry. The net income has significantly decreased by 380.8% when compared to the same quarter one year ago, falling from -$0.65 million to -$3.10 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.28%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 333.33% compared to the year-earlier 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's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, INDUSTRIAL SERVICES AMER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • INDUSTRIAL SERVICES AMER 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 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, INDUSTRIAL SERVICES AMER INC continued to lose money by earning -$0.97 versus -$1.96 in the prior year.
  • IDSA, with its decline in revenue, underperformed when compared the industry average of 5.3%. Since the same quarter one year prior, revenues fell by 29.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Industrial Services of America Ratings Report

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Comstock ( CHCI) was another company that pushed the Materials & Construction industry lower today. Comstock was down $0.05 (8.2%) to $0.56 on heavy volume. Throughout the day, 34,551 shares of Comstock exchanged hands as compared to its average daily volume of 17,300 shares. The stock ranged in price between $0.56-$0.65 after having opened the day at $0.59 as compared to the previous trading day's close of $0.61.

Comstock Holding Companies, Inc. operates as a real estate development and construction services company in the United States. The company operates through three segments: Homebuilding, Multi-Family, and Real Estate Services. Comstock has a market cap of $12.3 million and is part of the industrial goods sector. Shares are down 40.8% year-to-date as of the close of trading on Thursday.

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

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Highlights from TheStreet Ratings analysis on CHCI go as follows:

  • The gross profit margin for COMSTOCK HOLDING COS INC is rather low; currently it is at 15.14%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -9.14% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$3.78 million or 45.69% when compared to the same quarter last year. Despite a decrease in cash flow of 45.69%, COMSTOCK HOLDING COS INC is still significantly exceeding the industry average of -103.90%.
  • CHCI'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 61.43%, 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.
  • COMSTOCK HOLDING COS INC reported significant earnings per share improvement 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, COMSTOCK HOLDING COS INC reported poor results of -$0.32 versus -$0.10 in the prior year.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Household Durables industry average. The net income increased by 40.3% when compared to the same quarter one year prior, rising from -$1.58 million to -$0.94 million.

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

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