Skip to main content

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.

The Consumer Goods sector as a whole closed the day down 0.4% versus the S&P 500, which was down 0.3%. Laggards within the Consumer Goods sector included

Liberty TripAdvisor Holdings

(

LTRPB

), down 13.1%,

Leading Brands

(

LBIX

), down 3.1%,

Aoxin Tianli Group

(

ABAC

), down 3.6%,

Pingtan Marine Enterprise

(

TheStreet Recommends

PME

), down 11.3% and

STR Holdings

(

STRI

), down 3.4%.

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

ACCO Brands

(

ACCO

) is one of the companies that pushed the Consumer Goods sector lower today. ACCO Brands was down $0.39 (4.8%) to $7.79 on average volume. Throughout the day, 816,249 shares of ACCO Brands exchanged hands as compared to its average daily volume of 582,500 shares. The stock ranged in price between $7.78-$8.28 after having opened the day at $8.20 as compared to the previous trading day's close of $8.18.

ACCO Brands Corporation manufactures and markets office, school, and calendar products, and select computer and electronic accessories primarily in the Unites States, Northern Europe, Brazil, Canada, Australia, and Mexico. ACCO Brands has a market cap of $888.1 million and is part of the consumer non-durables industry. Shares are down 9.2% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates ACCO Brands a buy, no analysts rate it a sell, and 2 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

ACCO Brands

as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, attractive valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from TheStreet Ratings analysis on ACCO go as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 30.0% when compared to the same quarter one year prior, rising from $21.30 million to $27.70 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Services & Supplies industry and the overall market on the basis of return on equity, ACCO BRANDS CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has slightly increased to -$41.00 million or 3.30% when compared to the same quarter last year. Despite an increase in cash flow, ACCO BRANDS CORP's average is still marginally south of the industry average growth rate of 5.77%.

You can view the full analysis from the report here:

ACCO Brands 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.

At the close,

STR Holdings

(

STRI

) was down $0.03 (3.4%) to $0.86 on light volume. Throughout the day, 9,961 shares of STR Holdings exchanged hands as compared to its average daily volume of 36,200 shares. The stock ranged in price between $0.84-$0.88 after having opened the day at $0.84 as compared to the previous trading day's close of $0.89.

STR Holdings, Inc., together with its subsidiaries, operates as a plastic and industrial materials research and development company worldwide. STR Holdings has a market cap of $15.9 million and is part of the consumer non-durables industry. Shares are down 78.3% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates STR Holdings a buy, no analysts rate it a sell, and none 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

STR Holdings

as a

sell

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

Highlights from TheStreet Ratings analysis on STRI 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 Semiconductors & Semiconductor Equipment industry and the overall market, STR HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for STR HOLDINGS INC is currently extremely low, coming in at 5.01%. Regardless of STRI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, STRI's net profit margin of -37.97% significantly underperformed when compared to the industry average.
  • STRI'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 77.27%, 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.
  • STRI, with its decline in revenue, underperformed when compared the industry average of 11.4%. Since the same quarter one year prior, revenues fell by 26.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • STR HOLDINGS 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, STR HOLDINGS INC reported poor results of -$2.25 versus -$1.32 in the prior year. This year, the market expects an improvement in earnings (-$0.34 versus -$2.25).

You can view the full analysis from the report here:

STR Holdings 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.

Leading Brands

(

LBIX

) was another company that pushed the Consumer Goods sector lower today. Leading Brands was down $0.12 (3.1%) to $3.85 on average volume. Throughout the day, 5,340 shares of Leading Brands exchanged hands as compared to its average daily volume of 5,200 shares. The stock ranged in price between $3.65-$4.00 after having opened the day at $3.99 as compared to the previous trading day's close of $3.97.

Leading Brands, Inc., together with its subsidiaries, engages in the development, production, marketing, and distribution of beverages in Canada, the western United States, and Asia. Leading Brands has a market cap of $11.6 million and is part of the consumer non-durables industry. Shares are up 13.6% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates

Leading Brands

as a

sell

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

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 LBIX go as follows:

  • LEADING BRANDS 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, LEADING BRANDS INC reported lower earnings of $0.04 versus $0.36 in the prior year.
  • 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 Beverages industry. The net income has significantly decreased by 329.6% when compared to the same quarter one year ago, falling from $0.18 million to -$0.41 million.
  • 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 Beverages industry and the overall market, LEADING BRANDS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LEADING BRANDS INC is currently lower than what is desirable, coming in at 31.10%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -13.27% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.64 million or 67.44% 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:

Leading Brands 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.