3 Stocks Moving The Consumer Non-Durables Industry 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 27 points (0.2%) at 16,518 as of Monday, May 19, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,874 issues advancing vs. 1,111 declining with 157 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.4%. Top gainers within the Consumer Non-Durables industry included CTI Industries ( CTIB), up 2.9%, Deswell Industries ( DSWL), up 2.5%, Forward Industries ( FORD), up 12.5%, Northern Technologies International ( NTIC), up 1.9% and Ever-Glory International Group ( EVK), up 5.4%.

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

Northern Technologies International ( NTIC) is one of the companies that pushed the Consumer Non-Durables industry higher today. Northern Technologies International was up $0.40 (1.9%) to $20.91 on light volume. Throughout the day, 410 shares of Northern Technologies International exchanged hands as compared to its average daily volume of 5,200 shares. The stock ranged in a price between $20.91-$20.91 after having opened the day at $20.91 as compared to the previous trading day's close of $20.51.

Northern Technologies International Corporation develops, markets, and sells rust and corrosion inhibiting products and services under the ZERUST brand name to the automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets. Northern Technologies International has a market cap of $93.4 million and is part of the consumer goods sector. Shares are up 10.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Northern Technologies International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Northern Technologies International 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, expanding profit margins, good cash flow from operations and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from TheStreet Ratings analysis on NTIC go as follows:

  • NTIC's revenue growth has slightly outpaced the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 18.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NTIC 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 5.18, which clearly demonstrates the ability to cover short-term cash needs.
  • 36.82% is the gross profit margin for NORTHERN TECH INTL which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.48% is above that of the industry average.
  • Net operating cash flow has significantly increased by 332.97% to $3.95 million when compared to the same quarter last year. In addition, NORTHERN TECH INTL has also vastly surpassed the industry average cash flow growth rate of 38.91%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 136.2% when compared to the same quarter one year prior, rising from $0.43 million to $1.03 million.

You can view the full analysis from the report here: Northern Technologies International Ratings Report

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At the close, Deswell Industries ( DSWL) was up $0.05 (2.5%) to $2.07 on average volume. Throughout the day, 35,400 shares of Deswell Industries exchanged hands as compared to its average daily volume of 28,300 shares. The stock ranged in a price between $2.00-$2.07 after having opened the day at $2.01 as compared to the previous trading day's close of $2.02.

Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. Deswell Industries has a market cap of $32.6 million and is part of the consumer goods sector. Shares are down 9.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Deswell Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Deswell Industries 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.

Highlights from TheStreet Ratings analysis on DSWL go as follows:

  • DESWELL INDUSTRIES 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, DESWELL INDUSTRIES INC reported poor results of -$0.12 versus -$0.09 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 543.0% when compared to the same quarter one year ago, falling from -$0.22 million to -$1.42 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 Electronic Equipment, Instruments & Components industry and the overall market, DESWELL INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DESWELL INDUSTRIES INC is rather low; currently it is at 18.76%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.25% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.22 million or 103.83% 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: Deswell Industries Ratings Report

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CTI Industries ( CTIB) was another company that pushed the Consumer Non-Durables industry higher today. CTI Industries was up $0.14 (2.9%) to $4.99 on average volume. Throughout the day, 2,146 shares of CTI Industries exchanged hands as compared to its average daily volume of 2,500 shares. The stock ranged in a price between $4.72-$4.99 after having opened the day at $4.72 as compared to the previous trading day's close of $4.85.

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 $16.0 million and is part of the consumer goods sector. Shares are down 16.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate CTI Industries a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CTI Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, relatively poor performance when compared with the S&P 500 during the past year and generally high debt management risk.

Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • 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 Household Durables industry. The net income has significantly decreased by 65.4% when compared to the same quarter one year ago, falling from $0.13 million to $0.05 million.
  • The gross profit margin for CTI INDUSTRIES CORP is rather low; currently it is at 23.44%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.30% trails that of the industry average.
  • CTIB's debt-to-equity ratio of 0.76 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CTIB's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.59 is low and demonstrates weak liquidity.
  • 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. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • 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.

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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