3 Stocks Improving Performance Of The Consumer Durables Industry

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 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.

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 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

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, Marine Products ( MPX) was up $0.39 (5.5%) to $7.43 on light volume. Throughout the day, 10,726 shares of Marine Products exchanged hands as compared to its average daily volume of 23,500 shares. The stock ranged in a price between $7.16-$7.45 after having opened the day at $7.16 as compared to the previous trading day's close of $7.04.

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats in the sportboat, deckboat, cruiser, sport yacht, and sport fishing markets worldwide. Marine Products has a market cap of $261.7 million and is part of the consumer goods sector. Shares are down 29.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Marine Products a buy, no analysts rate it a sell, and 2 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 Marine Products as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • MPX's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MPX 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.07, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Leisure Equipment & Products industry average. The net income increased by 36.5% when compared to the same quarter one year prior, rising from $1.45 million to $1.98 million.
  • MARINE PRODUCTS CORP has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. We anticipate the company beginning to experience more growth in the coming year. During the past fiscal year, MARINE PRODUCTS CORP's EPS of $0.19 remained unchanged from the prior years' EPS of $0.19. This year, the market expects an improvement in earnings ($0.22 versus $0.19).
  • 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. In comparison to the other companies in the Leisure Equipment & Products industry and the overall market, MARINE PRODUCTS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: Marine Products 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.

Gaming Partners International ( GPIC) was another company that pushed the Consumer Durables industry higher today. Gaming Partners International was up $0.32 (3.9%) to $8.64 on average volume. Throughout the day, 8,375 shares of Gaming Partners International exchanged hands as compared to its average daily volume of 6,500 shares. The stock ranged in a price between $8.15-$8.64 after having opened the day at $8.15 as compared to the previous trading day's close of $8.32.

Gaming Partners International Corporation, together with its subsidiaries, manufactures and supplies casino table game equipment to licensed casinos worldwide. Gaming Partners International has a market cap of $65.3 million and is part of the consumer goods sector. Shares are up 1.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Gaming Partners International a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Gaming Partners International as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on GPIC go as follows:

  • GPIC 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. Along with this, the company maintains a quick ratio of 4.33, which clearly demonstrates the ability to cover short-term cash needs.
  • 37.23% is the gross profit margin for GAMING PARTNERS INTL CORP which we consider to be strong. Regardless of GPIC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GPIC's net profit margin of 4.39% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to $0.91 million or 82.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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, GAMING PARTNERS INTL 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: Gaming Partners International 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.

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