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 1.2% versus the S&P 500, which was down 1.3%. Laggards within the Consumer Durables industry included

Natuzzi SPA

(

NTZ

), down 1.7%,

Entertainment Gaming Asia

(

EGT

), down 11.3%,

SGOCO Group

(

SGOC

), down 1.8%,

Stanley Furniture

(

STLY

), down 5.1% and

Ballantyne Strong

(

BTN

), down 3.3%.

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

Stanley Furniture

(

STLY

) is one of the companies that pushed the Consumer Durables industry lower today. Stanley Furniture was down $0.16 (5.1%) to $2.96 on average volume. Throughout the day, 25,334 shares of Stanley Furniture exchanged hands as compared to its average daily volume of 29,500 shares. The stock ranged in price between $2.95-$3.13 after having opened the day at $3.02 as compared to the previous trading day's close of $3.12.

Stanley Furniture Company, Inc. designs, manufactures, and imports wood furniture for the residential market in the United States. Stanley Furniture has a market cap of $46.0 million and is part of the consumer goods sector. Shares are up 13.9% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Stanley Furniture 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

Stanley Furniture

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on STLY go as follows:

  • STANLEY FURNITURE CO 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, STANLEY FURNITURE CO INC swung to a loss, reporting -$0.57 versus $2.09 in the prior year. For the next year, the market is expecting a contraction of 224.6% in earnings (-$1.85 versus -$0.57).
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Household Durables industry and the overall market, STANLEY FURNITURE CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for STANLEY FURNITURE CO INC is rather low; currently it is at 20.94%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -16.25% is significantly below that of the industry average.
  • The share price of STANLEY FURNITURE CO INC has not done very well: it is down 13.89% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.7%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here:

Stanley Furniture 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,

Entertainment Gaming Asia

(

EGT

) was down $0.06 (11.3%) to $0.47 on average volume. Throughout the day, 27,838 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 26,300 shares. The stock ranged in price between $0.45-$0.51 after having opened the day at $0.48 as compared to the previous trading day's close of $0.53.

Entertainment Gaming Asia Inc., a gaming company, owns and leases electronic gaming machines (EGMs) in resorts, hotels, and other venues in Cambodia and the Philippines. It operates in two segments, Gaming Operations and Gaming Products. Entertainment Gaming Asia has a market cap of $13.8 million and is part of the consumer goods sector. Shares are down 13.2% year-to-date as of the close of trading on Thursday.

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

Entertainment Gaming Asia

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on EGT go as follows:

  • ENTERTAINMENT GAMING ASIA's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.14 versus $0.07 in the prior year.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, ENTERTAINMENT GAMING ASIA'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 $0.07 million or 94.25% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • This stock's share value has moved by only 64.41% over the past year. 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.
  • EGT, with its decline in revenue, slightly underperformed the industry average of 9.8%. Since the same quarter one year prior, revenues fell by 19.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here:

Entertainment Gaming Asia 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 lower today. Natuzzi SPA was down $0.03 (1.7%) to $1.72 on light volume. Throughout the day, 966 shares of Natuzzi SPA exchanged hands as compared to its average daily volume of 5,300 shares. The stock ranged in price between $1.71-$1.74 after having opened the day at $1.71 as compared to the previous trading day's close of $1.75.

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. Natuzzi SPA has a market cap of $91.6 million and is part of the consumer goods sector. Shares are up 12.9% year-to-date as of the close of trading on Thursday.

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.

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

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 35.59%, 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.