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 0.2% versus the S&P 500, which was up 0.2%. Laggards within the Consumer Goods sector included Truett-Hurst Inc Class A ( THST), down 3.3%, SkyPeople Fruit Juice ( SPU), down 3.0%, Natuzzi SPA ( NTZ), down 4.2%, American Lorain ( ALN), down 1.7% and Tianli Agritech ( OINK), down 2.9%.

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

Natuzzi SPA ( NTZ) is one of the companies that pushed the Consumer Goods sector lower today. Natuzzi SPA was down $0.11 (4.2%) to $2.49 on heavy volume. Throughout the day, 61,502 shares of Natuzzi SPA exchanged hands as compared to its average daily volume of 29,600 shares. The stock ranged in price between $2.40-$2.53 after having opened the day at $2.53 as compared to the previous trading day's close of $2.60.

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. Natuzzi SPA has a market cap of $148.1 million and is part of the food & beverage industry. Shares are up 0.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Natuzzi SPA 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 NTZ go as follows:

  • NATUZZI SPA 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 reported a trend of declining earnings per share over the past two years. During the past fiscal year, NATUZZI SPA reported poor results of -$1.71 versus -$0.63 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 Household Durables industry. The net income has significantly decreased by 154.8% when compared to the same quarter one year ago, falling from -$16.42 million to -$41.84 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Household Durables industry and the overall market, NATUZZI SPA's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NATUZZI SPA is currently lower than what is desirable, coming in at 32.08%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -23.92% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $5.73 million or 19.95% 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: Natuzzi SPA Ratings Report

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At the close, SkyPeople Fruit Juice ( SPU) was down $0.04 (3.0%) to $1.30 on heavy volume. Throughout the day, 56,807 shares of SkyPeople Fruit Juice exchanged hands as compared to its average daily volume of 25,000 shares. The stock ranged in price between $1.20-$1.36 after having opened the day at $1.35 as compared to the previous trading day's close of $1.34.

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 $34.7 million and is part of the food & beverage industry. Shares are down 23.4% year-to-date as of the close of trading on Tuesday.

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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 0.25 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

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Truett-Hurst Inc Class A ( THST) was another company that pushed the Consumer Goods sector lower today. Truett-Hurst Inc Class A was down $0.17 (3.3%) to $4.92 on light volume. Throughout the day, 2,183 shares of Truett-Hurst Inc Class A exchanged hands as compared to its average daily volume of 3,400 shares. The stock ranged in price between $4.92-$5.02 after having opened the day at $5.00 as compared to the previous trading day's close of $5.09.

Truett-Hurst Inc Class A has a market cap of $18.3 million and is part of the food & beverage industry. Shares are up 22.1% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Truett-Hurst Inc Class A a buy, no analysts rate it a sell, and none rate it a hold.

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Highlights from TheStreet Ratings analysis on THST go as follows:

You can view the full analysis from the report here: Truett-Hurst Inc Class A 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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