3 Stocks Pushing The Consumer Goods Sector 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 Consumer Goods sector as a whole closed the day up 1.0% versus the S&P 500, which was up 0.4%. Laggards within the Consumer Goods sector included CTI Industries ( CTIB), down 5.6%, Golden ( GLDC), down 3.2%, Global-Tech Advanced Innovations ( GAI), down 4.9%, SkyPeople Fruit Juice ( SPU), down 3.4% and Appliance Recycling Centers Of America ( ARCI), down 2.6%.

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

Appliance Recycling Centers Of America ( ARCI) is one of the companies that pushed the Consumer Goods sector lower today. Appliance Recycling Centers Of America was down $0.09 (2.6%) to $3.38 on light volume. Throughout the day, 2,588 shares of Appliance Recycling Centers Of America exchanged hands as compared to its average daily volume of 45,500 shares. The stock ranged in price between $3.36-$3.49 after having opened the day at $3.49 as compared to the previous trading day's close of $3.47.

Appliance Recycling Centers of America, Inc., together with its subsidiaries, sells new household appliances through a chain of company-owned retail stores under the ApplianceSmart name. The company operates in two segments, Recycling and Retail. Appliance Recycling Centers Of America has a market cap of $19.4 million and is part of the consumer non-durables industry. Shares are up 21.2% year-to-date as of the close of trading on Thursday.

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 Appliance Recycling Centers Of America as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on ARCI go as follows:

  • The revenue growth came in higher than the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 10.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 466.66% and other important driving factors, this stock has surged by 77.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • APPLIANCE RECYCLING CTR AMER reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, APPLIANCE RECYCLING CTR AMER turned its bottom line around by earning $0.57 versus -$0.69 in the prior year.
  • ARCI's debt-to-equity ratio of 0.92 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.70 is weak.
  • The gross profit margin for APPLIANCE RECYCLING CTR AMER is currently lower than what is desirable, coming in at 28.20%. Regardless of ARCI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.89% trails the industry average.

You can view the full analysis from the report here: Appliance Recycling Centers Of America 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, SkyPeople Fruit Juice ( SPU) was down $0.05 (3.4%) to $1.42 on light volume. Throughout the day, 8,321 shares of SkyPeople Fruit Juice exchanged hands as compared to its average daily volume of 25,500 shares. The stock ranged in price between $1.39-$1.45 after having opened the day at $1.41 as compared to the previous trading day's close of $1.47.

SkyPeople Fruit Juice, Inc., through its subsidiaries, produces and sells fruit juice concentrates, fruit beverages, and other fruit-related products in the People's Republic of China and internationally. SkyPeople Fruit Juice has a market cap of $38.9 million and is part of the consumer non-durables industry. Shares are down 16.0% year-to-date as of the close of trading on Thursday.

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 SkyPeople Fruit Juice 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 SPU go as follows:

  • SPU's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SPU has a quick ratio of 2.40, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 39.15% is the gross profit margin for SKYPEOPLE FRUIT JUICE INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.27% trails the industry average.
  • 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 Food Products industry. The net income has significantly decreased by 86.8% when compared to the same quarter one year ago, falling from $3.82 million to $0.50 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. In comparison to the other companies in the Food Products industry and the overall market, SKYPEOPLE FRUIT JUICE 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: SkyPeople Fruit Juice 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.

CTI Industries ( CTIB) was another company that pushed the Consumer Goods sector lower today. CTI Industries was down $0.28 (5.6%) to $4.71 on average volume. Throughout the day, 2,301 shares of CTI Industries exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in price between $4.70-$4.90 after having opened the day at $4.90 as compared to the previous trading day's close of $4.99.

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 $16.5 million and is part of the consumer non-durables industry. Shares are down 14.6% year-to-date as of the close of trading on Thursday.

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.

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

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.

More from Markets

Dow Fluctuates, Nasdaq Strikes Record High

Dow Fluctuates, Nasdaq Strikes Record High

Square Jumps After Price Target Is Raised

Square Jumps After Price Target Is Raised

Fed Chief Uncertain About Policy-Making as Unemployment Hits 18-Year Low

Fed Chief Uncertain About Policy-Making as Unemployment Hits 18-Year Low

Jim Cramer: Oil Needs to Go Down to See Worldwide Growth Pick Up

Jim Cramer: Oil Needs to Go Down to See Worldwide Growth Pick Up

Jim Cramer on the Problem With the Case for More Rate Hikes

Jim Cramer on the Problem With the Case for More Rate Hikes