3 Stocks Moving The Consumer Goods Sector Upward

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 40 points (0.2%) at 16,487 as of Friday, May 16, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,578 issues advancing vs. 1,383 declining with 164 unchanged.

The Consumer Goods sector as a whole closed the day up 2.2% versus the S&P 500, which was up 0.3%. Top gainers within the Consumer Goods sector included Leading Brands ( LBIX), up 1.7%, Global-Tech Advanced Innovations ( GAI), up 1.8%, Entertainment Gaming Asia ( EGT), up 7.0%, Constellation Brands ( STZ.B), up 3.9% and Exceed ( EDS), up 1.9%.

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

Exceed ( EDS) is one of the companies that pushed the Consumer Goods sector higher today. Exceed was up $0.03 (1.9%) to $1.61 on light volume. Throughout the day, 31,050 shares of Exceed exchanged hands as compared to its average daily volume of 51,000 shares. The stock ranged in a price between $1.53-$1.61 after having opened the day at $1.54 as compared to the previous trading day's close of $1.58.

Exceed Company Ltd. is engaged in the design, development, and wholesale of footwear, apparel, and accessories under the brand name of Xidelong in the People's Republic of China. Exceed has a market cap of $52.4 million and is part of the food & beverage industry. Shares are down 4.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Exceed 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 Exceed 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, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on EDS go as follows:

  • EDS's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 9.67, which clearly demonstrates the ability to cover short-term cash needs.
  • 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, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 40.9% when compared to the same quarter one year ago, falling from $5.10 million to $3.01 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 Textiles, Apparel & Luxury Goods industry and the overall market, EXCEED CO LTD'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: Exceed 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 up $0.05 (7.0%) to $0.76 on light volume. Throughout the day, 1,000 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 24,900 shares. The stock ranged in a price between $0.70-$0.76 after having opened the day at $0.70 as compared to the previous trading day's close of $0.71.

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 $21.3 million and is part of the food & beverage industry. Shares are down 42.7% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Entertainment Gaming Asia 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 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, poor profit margins 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.
  • 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.
  • The gross profit margin for ENTERTAINMENT GAMING ASIA is currently extremely low, coming in at 13.85%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -20.97% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 59.05%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% 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.
  • EGT, with its decline in revenue, underperformed when compared the industry average of 3.8%. Since the same quarter one year prior, revenues fell by 29.0%. 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: 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.

Leading Brands ( LBIX) was another company that pushed the Consumer Goods sector higher today. Leading Brands was up $0.07 (1.7%) to $4.12 on heavy volume. Throughout the day, 7,143 shares of Leading Brands exchanged hands as compared to its average daily volume of 2,500 shares. The stock ranged in a price between $4.04-$4.20 after having opened the day at $4.05 as compared to the previous trading day's close of $4.05.

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 $11.8 million and is part of the food & beverage industry. Shares are up 4.7% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Leading Brands a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Leading Brands as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from TheStreet Ratings analysis on LBIX go as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Beverages industry. The net income increased by 125.3% when compared to the same quarter one year prior, rising from -$0.38 million to $0.10 million.
  • 43.39% is the gross profit margin for LEADING BRANDS INC which we consider to be strong. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, LBIX's net profit margin of 2.96% significantly trails the industry average.
  • LEADING BRANDS INC 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, LEADING BRANDS INC reported lower earnings of $0.15 versus $0.43 in the prior year.
  • 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 Beverages industry and the overall market, LEADING BRANDS INC'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: Leading Brands 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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