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 0.2% versus the S&P 500, which was up 0.1%. Laggards within the Food & Beverage industry included SkyPeople Fruit Juice ( SPU), down 6.4%, Crumbs Bake Shop ( CRMB), down 2.9%, Tofutti Brands ( TOF), down 2.9%, Key Technology ( KTEC), down 1.9% and G Willi-Food International ( WILC), down 7.0%.

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

Key Technology ( KTEC) is one of the companies that pushed the Food & Beverage industry lower today. Key Technology was down $0.22 (1.9%) to $11.58 on light volume. Throughout the day, 8,422 shares of Key Technology exchanged hands as compared to its average daily volume of 12,100 shares. The stock ranged in price between $11.58-$12.04 after having opened the day at $11.70 as compared to the previous trading day's close of $11.80.

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 $74.3 million and is part of the consumer goods sector. Shares are down 17.7% year-to-date as of the close of trading on Tuesday.

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 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

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, Crumbs Bake Shop ( CRMB) was down $0.01 (2.9%) to $0.34 on light volume. Throughout the day, 42,477 shares of Crumbs Bake Shop exchanged hands as compared to its average daily volume of 130,600 shares. The stock ranged in price between $0.33-$0.36 after having opened the day at $0.36 as compared to the previous trading day's close of $0.35.

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 $4.2 million and is part of the consumer goods sector. Shares are down 58.4% year-to-date as of the close of trading on Tuesday.

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 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.

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 73.84%, 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 11.98%.
  • 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.

SkyPeople Fruit Juice ( SPU) was another company that pushed the Food & Beverage industry lower today. SkyPeople Fruit Juice was down $0.09 (6.4%) to $1.32 on heavy volume. Throughout the day, 131,776 shares of SkyPeople Fruit Juice exchanged hands as compared to its average daily volume of 24,900 shares. The stock ranged in price between $1.25-$1.45 after having opened the day at $1.39 as compared to the previous trading day's close of $1.41.

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 $37.9 million and is part of the consumer goods sector. Shares are down 18.9% year-to-date as of the close of trading on Tuesday.

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.

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 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.

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists