3 Stocks Improving Performance Of The Consumer Durables Industry

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 112 points (0.7%) at 16,695 as of Monday, May 12, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,429 issues advancing vs. 632 declining with 133 unchanged.

The Consumer Durables industry as a whole closed the day up 1.6% versus the S&P 500, which was up 1.0%. Top gainers within the Consumer Durables industry included Koss ( KOSS), up 1.5%, Gaming Partners International ( GPIC), up 3.9%, Marine Products ( MPX), up 5.5%, Ballantyne Strong ( BTN), up 3.9% and SGOCO Group ( SGOC), up 2.0%.

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

Ballantyne Strong ( BTN) is one of the companies that pushed the Consumer Durables industry higher today. Ballantyne Strong was up $0.16 (3.9%) to $4.29 on heavy volume. Throughout the day, 94,734 shares of Ballantyne Strong exchanged hands as compared to its average daily volume of 42,000 shares. The stock ranged in a price between $3.98-$4.35 after having opened the day at $4.15 as compared to the previous trading day's close of $4.13.

Ballantyne Strong, Inc. designs, integrates, and installs technology solutions for retail, financial, government, and cinema markets worldwide. The company operates in two segments, Systems Integration and Managed Services. Ballantyne Strong has a market cap of $56.8 million and is part of the consumer goods sector. Shares are down 10.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Ballantyne Strong a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Ballantyne Strong as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on BTN go as follows:

  • BTN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, BTN has a quick ratio of 2.18, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The revenue fell significantly faster than the industry average of 14.7%. Since the same quarter one year prior, revenues fell by 16.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of BALLANTYNE STRONG INC has not done very well: it is down 15.90% 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. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The gross profit margin for BALLANTYNE STRONG INC is rather low; currently it is at 15.01%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -5.26% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $2.73 million or 63.25% 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: Ballantyne Strong Ratings Report

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3 Stocks Pushing The Consumer Durables Industry Lower

3 Stocks Pushing The Consumer Durables Industry Lower