3 Stocks Pushing The Consumer Goods Sector 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 Goods sector as a whole closed the day up 0.9% versus the S&P 500, which was up 0.6%. Laggards within the Consumer Goods sector included CTI Industries ( CTIB), down 2.0%, Entertainment Gaming Asia ( EGT), down 4.5%, DS Healthcare Group ( DSKX), down 3.1%, SkyPeople Fruit Juice ( SPU), down 4.3% and Constellation Brands ( STZ.B), down 2.5%.

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

DS Healthcare Group ( DSKX) is one of the companies that pushed the Consumer Goods sector lower today. DS Healthcare Group was down $0.06 (3.1%) to $1.83 on light volume. Throughout the day, 200 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 16,400 shares. The stock ranged in price between $1.83-$2.03 after having opened the day at $2.03 as compared to the previous trading day's close of $1.89.

DS Healthcare Group has a market cap of $30.2 million and is part of the conglomerates industry. Shares are down 22.9% year-to-date as of the close of trading on Tuesday.

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At the close, Entertainment Gaming Asia ( EGT) was down $0.04 (4.5%) to $0.82 on light volume. Throughout the day, 3,695 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 25,500 shares. The stock ranged in price between $0.81-$0.87 after having opened the day at $0.84 as compared to the previous trading day's close of $0.86.

Entertainment Gaming Asia Inc. engages in the ownership and leasing of electronic gaming machines (EGMs) in resorts, hotels, and other venues primarily in Cambodia and the Philippines. Entertainment Gaming Asia has a market cap of $25.2 million and is part of the conglomerates industry. Shares are down 30.8% year-to-date as of the close of trading on Tuesday.

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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, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on EGT go as follows:

  • ENTERTAINMENT GAMING ASIA 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, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.17 versus $0.07 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 1683.5% when compared to the same quarter one year ago, falling from $0.27 million to -$4.23 million.
  • 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.07%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1500.00% compared to the year-earlier quarter. 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.
  • Net operating cash flow has significantly decreased to $1.42 million or 67.15% when compared to the same quarter last year. Despite a decrease in cash flow ENTERTAINMENT GAMING ASIA is still fairing well by exceeding its industry average cash flow growth rate of -85.10%.

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.

CTI Industries ( CTIB) was another company that pushed the Consumer Goods sector lower today. CTI Industries was down $0.10 (2.0%) to $4.70 on light volume. Throughout the day, 250 shares of CTI Industries exchanged hands as compared to its average daily volume of 2,700 shares. The stock ranged in price between $4.70-$4.70 after having opened the day at $4.70 as compared to the previous trading day's close of $4.80.

CTI Industries Corporation develops, manufactures, and supplies flexible film products for novelty, packaging and container, and custom product applications worldwide. CTI Industries has a market cap of $16.7 million and is part of the conglomerates industry. Shares are down 17.8% year-to-date as of the close of trading on Tuesday.

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

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Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • In its most recent trading session, CTIB has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • The debt-to-equity ratio of 1.49 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, CTIB has a quick ratio of 0.58, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly decreased to -$0.21 million or 503.92% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for CTI INDUSTRIES CORP is currently lower than what is desirable, coming in at 28.59%. Regardless of CTIB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.44% trails the industry average.
  • 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 Household Durables industry and the overall market, CTI INDUSTRIES CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: CTI Industries 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.

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