3 Stocks Pushing The Food & Beverage Industry 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 Food & Beverage industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.5%. Laggards within the Food & Beverage industry included Crumbs Bake Shop ( CRMB), down 2.1%, Tofutti Brands ( TOF), down 2.1%, Key Technology ( KTEC), down 1.7%, G Willi-Food International ( WILC), down 1.7% and Agria ( GRO), down 3.0%.

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

G Willi-Food International ( WILC) is one of the companies that pushed the Food & Beverage industry lower today. G Willi-Food International was down $0.12 (1.7%) to $7.00 on light volume. Throughout the day, 10,889 shares of G Willi-Food International exchanged hands as compared to its average daily volume of 24,000 shares. The stock ranged in price between $7.00-$7.10 after having opened the day at $7.09 as compared to the previous trading day's close of $7.12.

G. Willi-Food International Ltd. develops, imports, exports, markets, and distributes various food products worldwide. G Willi-Food International has a market cap of $93.4 million and is part of the consumer goods sector. Shares are down 12.1% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates G Willi-Food 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, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on WILC go as follows:

  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • WILC 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 10.63, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to -$1.93 million or 45.31% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.12%.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • G WILLI-FOOD INTL LTD's earnings per share declined by 15.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, G WILLI-FOOD INTL LTD increased its bottom line by earning $0.70 versus $0.50 in the prior year. This year, the market expects an improvement in earnings ($0.79 versus $0.70).

You can view the full analysis from the report here: G Willi-Food International Ratings Report

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At the close, Key Technology ( KTEC) was down $0.20 (1.7%) to $11.79 on light volume. Throughout the day, 7,997 shares of Key Technology exchanged hands as compared to its average daily volume of 12,100 shares. The stock ranged in price between $11.79-$12.42 after having opened the day at $12.01 as compared to the previous trading day's close of $11.99.

Key Technology, Inc. designs, manufactures, sells, and services process automation systems integrating electro-optical inspection, sorting, and process systems in the United States and internationally. Key Technology has a market cap of $74.9 million and is part of the consumer goods sector. Shares are down 17.0% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Key Technology 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 deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on KTEC go as follows:

  • KTEC's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • KTEC, with its decline in revenue, slightly underperformed the industry average of 6.4%. Since the same quarter one year prior, revenues fell by 10.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • KEY TECHNOLOGY 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, KEY TECHNOLOGY INC increased its bottom line by earning $0.66 versus $0.09 in the prior year. For the next year, the market is expecting a contraction of 153.0% in earnings (-$0.35 versus $0.66).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Machinery industry and the overall market, KEY TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for KEY TECHNOLOGY INC is currently lower than what is desirable, coming in at 31.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.05% trails that of the industry average.

You can view the full analysis from the report here: Key Technology Ratings Report

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Crumbs Bake Shop ( CRMB) was another company that pushed the Food & Beverage industry lower today. Crumbs Bake Shop was down $0.01 (2.1%) to $0.37 on light volume. Throughout the day, 57,821 shares of Crumbs Bake Shop exchanged hands as compared to its average daily volume of 145,200 shares. The stock ranged in price between $0.37-$0.41 after having opened the day at $0.38 as compared to the previous trading day's close of $0.38.

Crumbs Bake Shop, Inc. sells various cupcakes, cakes, cookies, and other baked goods under the trade name of Crumbs Bake Shop. It also sells hot and cold beverages. The company offers its products through company-operated stores, as well as through its Website crumbs.com. Crumbs Bake Shop has a market cap of $4.9 million and is part of the consumer goods sector. Shares are down 51.6% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Crumbs Bake Shop as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on CRMB go as follows:

  • CRMB's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 70.83%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • CRUMBS BAKE SHOP INC has improved earnings per share by 14.3% 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, CRUMBS BAKE SHOP INC reported poor results of -$1.31 versus -$0.91 in the prior year.
  • The gross profit margin for CRUMBS BAKE SHOP INC is rather high; currently it is at 52.88%. Regardless of CRMB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CRMB's net profit margin of -42.65% significantly underperformed when compared to the industry average.
  • Net operating cash flow has increased to -$0.54 million or 48.36% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.12%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Food & Staples Retailing industry average, but is less than that of the S&P 500. The net income increased by 9.7% when compared to the same quarter one year prior, going from -$5.36 million to -$4.84 million.

You can view the full analysis from the report here: Crumbs Bake Shop 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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