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 0.4% versus the S&P 500, which was down 0.1%. Laggards within the Food & Beverage industry included SkyPeople Fruit Juice ( SPU), down 4.3%, Crumbs Bake Shop ( CRMB), down 5.7%, Tofutti Brands ( TOF), down 2.9%, G Willi-Food International ( WILC), down 7.1% and RiceBran Technologies ( RIBT), down 1.7%.

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 $0.49 (7.1%) to $6.44 on heavy volume. Throughout the day, 120,032 shares of G Willi-Food International exchanged hands as compared to its average daily volume of 26,500 shares. The stock ranged in price between $6.40-$6.75 after having opened the day at $6.60 as compared to the previous trading day's close of $6.93.

G. Willi-Food International Ltd. develops, imports, exports, markets, and distributes various food products worldwide. G Willi-Food International has a market cap of $84.3 million and is part of the consumer goods sector. Shares are down 20.6% year-to-date as of the close of trading on Tuesday.

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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 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 6.6%. 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 11.98%.
  • 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).
  • 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. When compared to other companies in the Food & Staples Retailing industry and the overall market, G WILLI-FOOD INTL LTD's return on equity is below that of both the industry average and the S&P 500.

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

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At the close, Crumbs Bake Shop ( CRMB) was down $0.02 (5.7%) to $0.33 on light volume. Throughout the day, 50,807 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.

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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 $0.06 (4.3%) to $1.35 on heavy volume. Throughout the day, 133,076 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.

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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.

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