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.

All three major indices traded up today with the

Dow Jones Industrial Average

(

^DJI

) trading up 212 points (1.2%) at 17,885 as of Thursday, Feb. 5, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,364 issues advancing vs. 754 declining with 102 unchanged.

The Consumer Durables industry as a whole closed the day up 0.9% versus the S&P 500, which was up 1.0%. Top gainers within the Consumer Durables industry included

Natuzzi SPA

(

NTZ

), up 5.1%,

Appliance Recycling Centers Of America

(

ARCI

), up 2.4%,

Virco Manufacturing

(

VIRC

), up 2.0%,

Stanley Furniture

(

STLY

), up 3.7% and

Ballantyne Strong

(

BTN

), up 2.2%.

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

Virco Manufacturing

(

VIRC

) is one of the companies that pushed the Consumer Durables industry higher today. Virco Manufacturing was up $0.05 (2.0%) to $2.47 on light volume. Throughout the day, 14,772 shares of Virco Manufacturing exchanged hands as compared to its average daily volume of 29,500 shares. The stock ranged in a price between $2.41-$2.48 after having opened the day at $2.43 as compared to the previous trading day's close of $2.42.

Virco Mfg. Corporation is engaged in the design, production, and distribution of furniture for the commercial and education markets in the United States. Virco Manufacturing has a market cap of $36.2 million and is part of the consumer goods sector. Shares are down 0.8% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Virco Manufacturing a buy, no analysts rate it a sell, and 1 rates 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 Virco Manufacturing as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on VIRC go as follows:

  • VIRC has underperformed the S&P 500 Index, declining 8.99% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Commercial Services & Supplies industry and the overall market, VIRCO MFG. CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • 35.41% is the gross profit margin for VIRCO MFG. CORP which we consider to be strong. Regardless of VIRC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VIRC's net profit margin of 7.39% compares favorably to the industry average.
  • VIRC's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has slightly increased to $26.14 million or 6.14% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.61%.

You can view the full analysis from the report here:

Virco Manufacturing Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

Appliance Recycling Centers Of America

(

ARCI

) was up $0.07 (2.4%) to $2.96 on light volume. Throughout the day, 2,522 shares of Appliance Recycling Centers Of America exchanged hands as compared to its average daily volume of 23,500 shares. The stock ranged in a price between $2.85-$2.99 after having opened the day at $2.91 as compared to the previous trading day's close of $2.89.

Appliance Recycling Centers of America, Inc., together with its subsidiaries, sells new household appliances through a chain of company-owned retail stores under the ApplianceSmart name. The company operates in two segments, Recycling and Retail. Appliance Recycling Centers Of America has a market cap of $16.7 million and is part of the consumer goods sector. Shares are up 5.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Appliance Recycling Centers Of America a buy, no analysts rate it a sell, and none 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 Appliance Recycling Centers Of America as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on ARCI go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.81, 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 0.75 is somewhat weak and could be cause for future problems.
  • The gross profit margin for APPLIANCE RECYCLING CTR AMER is currently lower than what is desirable, coming in at 26.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.65% trails that of the industry average.
  • 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 Specialty Retail industry. The net income has significantly decreased by 51.0% when compared to the same quarter one year ago, falling from $1.13 million to $0.56 million.

You can view the full analysis from the report here:

Appliance Recycling Centers Of America Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Natuzzi SPA

(

NTZ

) was another company that pushed the Consumer Durables industry higher today. Natuzzi SPA was up $0.08 (5.1%) to $1.64 on light volume. Throughout the day, 1,500 shares of Natuzzi SPA exchanged hands as compared to its average daily volume of 5,200 shares. The stock ranged in a price between $1.61-$1.65 after having opened the day at $1.65 as compared to the previous trading day's close of $1.56.

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. Natuzzi SPA has a market cap of $95.4 million and is part of the consumer goods sector. Shares are up 0.7% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Natuzzi SPA a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Natuzzi SPA as a

sell

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

Highlights from TheStreet Ratings analysis on NTZ 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 Household Durables industry and the overall market, NATUZZI SPA's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NATUZZI SPA is currently lower than what is desirable, coming in at 30.78%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.81% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$28.70 million or 586.21% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • NTZ'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 31.91%, 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.
  • NATUZZI SPA 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, NATUZZI SPA reported poor results of -$1.71 versus -$0.63 in the prior year.

You can view the full analysis from the report here:

Natuzzi SPA Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.