3 Stocks Pushing The Consumer Durables Industry Lower
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 or Stephanie Link.The Consumer Durables industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.1%. Laggards within the Consumer Durables industry included Emerson Radio (MSN), down 1.7%, Natuzzi SPA (NTZ), down 1.6%, Stanley Furniture (STLY), down 1.5%, Black Diamond (BDE), down 1.7% and Skullcandy (SKUL), down 1.7%.TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:Black Diamond (BDE) is one of the companies that pushed the Consumer Durables industry lower today. Black Diamond was down $0.20 (1.7%) to $11.40 on light volume. Throughout the day, 34,229 shares of Black Diamond exchanged hands as compared to its average daily volume of 105,200 shares. The stock ranged in price between $11.31-$11.65 after having opened the day at $11.65 as compared to the previous trading day's close of $11.60. Black Diamond, Inc., together with its subsidiaries, designs, manufactures, and markets outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing, cycling, and other outdoor recreation activities in the United States and internationally. Black Diamond has a market cap of $374.1 million and is part of the consumer goods sector. Shares are down 13.0% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts who rate Black Diamond a buy, no analysts rate it a sell, and 3 rate it a hold.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreet Ratings rates Black Diamond 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.Highlights from TheStreet Ratings analysis on BDE go as follows:
- BDE's revenue growth has slightly outpaced the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BDE's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BDE has a quick ratio of 1.88, which demonstrates the ability of the company to cover short-term liquidity needs.
- BLACK DIAMOND INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLACK DIAMOND INC swung to a loss, reporting -$0.19 versus $0.08 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.19).
- 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. Compared to other companies in the Leisure Equipment & Products industry and the overall market, BLACK DIAMOND 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 -$7.11 million or 355800.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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