3 Stocks Pushing The Consumer Non-Durables 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 18.94 points (-0.1%) at 16,725 as of Tuesday, June 3, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,153 issues advancing vs. 1,837 declining with 172 unchanged.

The Consumer Non-Durables industry as a whole closed the day down 0.4% versus the S&P 500, which was unchanged. Top gainers within the Consumer Non-Durables industry included DS Healthcare Group ( DSKX), up 6.0%, Ocean Bio-Chem ( OBCI), up 1.7%, Deswell Industries ( DSWL), up 2.8%, Forward Industries ( FORD), up 2.8% and Fuwei Films (Holdings ( FFHL), up 2.4%.

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

Fuwei Films (Holdings ( FFHL) is one of the companies that pushed the Consumer Non-Durables industry higher today. Fuwei Films (Holdings was up $0.03 (2.4%) to $1.21 on light volume. Throughout the day, 14,320 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 128,000 shares. The stock ranged in a price between $1.19-$1.23 after having opened the day at $1.22 as compared to the previous trading day's close of $1.18.

Fuwei Films (Holdings) Co., Ltd., together with its subsidiaries, engages in the development, manufacture, and distribution of plastic films using the biaxially- oriented stretch technique in the People's Republic of China. Fuwei Films (Holdings has a market cap of $16.2 million and is part of the consumer goods sector. Shares are up 10.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Fuwei Films (Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Fuwei Films (Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on FFHL go as follows:

  • 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 Chemicals industry and the overall market, FUWEI FILMS HOLDINGS CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FUWEI FILMS HOLDINGS CO is rather low; currently it is at 17.15%. Regardless of FFHL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, FFHL's net profit margin of -18.75% significantly underperformed when compared to the industry average.
  • FUWEI FILMS HOLDINGS CO has improved earnings per share by 27.3% 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, FUWEI FILMS HOLDINGS CO reported poor results of -$0.74 versus -$0.66 in the prior year.
  • FFHL, with its decline in revenue, underperformed when compared the industry average of 11.3%. Since the same quarter one year prior, revenues slightly dropped by 7.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.31 is very weak and demonstrates a lack of ability to pay short-term obligations.

You can view the full analysis from the report here: Fuwei Films (Holdings 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, Deswell Industries ( DSWL) was up $0.06 (2.8%) to $2.18 on average volume. Throughout the day, 29,196 shares of Deswell Industries exchanged hands as compared to its average daily volume of 27,500 shares. The stock ranged in a price between $2.12-$2.18 after having opened the day at $2.15 as compared to the previous trading day's close of $2.12.

Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. Deswell Industries has a market cap of $33.9 million and is part of the consumer goods sector. Shares are down 5.8% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Deswell Industries 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 Deswell Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on DSWL go as follows:

  • DESWELL INDUSTRIES 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. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, DESWELL INDUSTRIES INC reported poor results of -$0.12 versus -$0.09 in the prior year.
  • 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 543.0% when compared to the same quarter one year ago, falling from -$0.22 million to -$1.42 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 Electronic Equipment, Instruments & Components industry and the overall market, DESWELL INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DESWELL INDUSTRIES INC is rather low; currently it is at 18.76%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.25% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.22 million or 103.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Deswell 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.

DS Healthcare Group ( DSKX) was another company that pushed the Consumer Non-Durables industry higher today. DS Healthcare Group was up $0.11 (6.0%) to $1.93 on heavy volume. Throughout the day, 39,075 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 13,600 shares. The stock ranged in a price between $1.83-$2.00 after having opened the day at $1.83 as compared to the previous trading day's close of $1.82.

DS Healthcare Group has a market cap of $29.6 million and is part of the consumer goods sector. Shares are down 24.9% year-to-date as of the close of trading on Monday.

Highlights from TheStreet Ratings analysis on DSKX go as follows:

You can view the full analysis from the report here: DS Healthcare Group 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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