3 Consumer Non-Durables Stocks Pushing The Industry Higher

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 66 points (0.4%) at 16,609 as of Friday, May 23, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,917 issues advancing vs. 1,047 declining with 178 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 Ocean Bio-Chem ( OBCI), up 8.2%, Exceed ( EDS), up 1.9%, Forward Industries ( FORD), up 2.2%, Northern Technologies International ( NTIC), up 2.4% and United-Guardian ( UG), up 1.6%.

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

United-Guardian ( UG) is one of the companies that pushed the Consumer Non-Durables industry higher today. United-Guardian was up $0.54 (1.6%) to $34.02 on light volume. Throughout the day, 1,912 shares of United-Guardian exchanged hands as compared to its average daily volume of 3,300 shares. The stock ranged in a price between $33.76-$34.30 after having opened the day at $33.76 as compared to the previous trading day's close of $33.48.

United-Guardian, Inc. researches, develops, manufactures, and markets cosmetic ingredients, personal care products, pharmaceuticals, medical and health care products, and specialty industrial products in the United States, Canada, China, France, and internationally. United-Guardian has a market cap of $153.9 million and is part of the consumer goods sector. Shares are up 18.8% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate United-Guardian 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 United-Guardian as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on UG go as follows:

  • UG's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 0.2%. 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.
  • The gross profit margin for UNITED-GUARDIAN INC is rather high; currently it is at 63.80%. Regardless of UG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, UG's net profit margin of 33.74% significantly outperformed against the industry.
  • Compared to its closing price of one year ago, UG's share price has jumped by 27.00%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • UNITED-GUARDIAN INC's earnings per share declined by 14.7% 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, UNITED-GUARDIAN INC increased its bottom line by earning $1.28 versus $1.05 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Personal Products industry. The net income has decreased by 14.6% when compared to the same quarter one year ago, dropping from $1.57 million to $1.34 million.

You can view the full analysis from the report here: United-Guardian 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, Northern Technologies International ( NTIC) was up $0.48 (2.4%) to $21.02 on light volume. Throughout the day, 1,335 shares of Northern Technologies International exchanged hands as compared to its average daily volume of 4,500 shares. The stock ranged in a price between $20.78-$21.05 after having opened the day at $20.78 as compared to the previous trading day's close of $20.54.

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 10.7% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Northern Technologies International 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 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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Exceed ( EDS) was another company that pushed the Consumer Non-Durables industry higher today. Exceed was up $0.03 (1.9%) to $1.60 on light volume. Throughout the day, 10,671 shares of Exceed exchanged hands as compared to its average daily volume of 48,600 shares. The stock ranged in a price between $1.59-$1.60 after having opened the day at $1.60 as compared to the previous trading day's close of $1.57.

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 $52.7 million and is part of the consumer goods sector. Shares are down 4.8% 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.

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.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of 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.

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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