3 Consumer Durables Stocks Pushing The 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 100 points (0.6%) at 16,838 as of Thursday, June 5, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,349 issues advancing vs. 623 declining with 153 unchanged.

The Consumer Durables industry as a whole closed the day up 1.1% versus the S&P 500, which was up 0.6%. Top gainers within the Consumer Durables industry included Entertainment Gaming Asia ( EGT), up 3.0%, Marine Products ( MPX), up 1.6%, Elecsys ( ESYS), up 4.5%, Bassett Furniture Industries ( BSET), up 4.3% and Hooker Furniture ( HOFT), up 12.3%.

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

Bassett Furniture Industries ( BSET) is one of the companies that pushed the Consumer Durables industry higher today. Bassett Furniture Industries was up $0.56 (4.3%) to $13.59 on average volume. Throughout the day, 28,399 shares of Bassett Furniture Industries exchanged hands as compared to its average daily volume of 37,100 shares. The stock ranged in a price between $13.00-$13.75 after having opened the day at $13.00 as compared to the previous trading day's close of $13.03.

Bassett Furniture Industries, Incorporated manufactures, imports, and retails home furnishings in the United States. The company operates in three segments: Wholesale, Retail, and Investments and Real Estate. Bassett Furniture Industries has a market cap of $141.7 million and is part of the consumer goods sector. Shares are down 14.5% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Bassett Furniture Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Bassett Furniture Industries as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on BSET go as follows:

  • BSET's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 171.23% to $5.34 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 151.32%.
  • The gross profit margin for BASSETT FURNITURE INDS is rather high; currently it is at 55.45%. 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 1.11% trails the industry average.
  • BASSETT FURNITURE INDS's earnings per share declined by 11.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BASSETT FURNITURE INDS reported lower earnings of $0.47 versus $2.42 in the prior year. This year, the market expects an improvement in earnings ($0.53 versus $0.47).
  • BSET, with its decline in revenue, underperformed when compared the industry average of 17.3%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Bassett Furniture 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.

At the close, Marine Products ( MPX) was up $0.12 (1.6%) to $7.68 on light volume. Throughout the day, 2,076 shares of Marine Products exchanged hands as compared to its average daily volume of 23,500 shares. The stock ranged in a price between $7.59-$7.80 after having opened the day at $7.59 as compared to the previous trading day's close of $7.56.

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats in the sportboat, deckboat, cruiser, sport yacht, and sport fishing markets worldwide. Marine Products has a market cap of $288.8 million and is part of the consumer goods sector. Shares are down 24.8% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Marine Products a buy, no analysts rate it a sell, and 2 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 Marine Products 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, compelling growth in net income, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • MPX's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MPX 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 the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.07, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Leisure Equipment & Products industry average. The net income increased by 36.5% when compared to the same quarter one year prior, rising from $1.45 million to $1.98 million.
  • MARINE PRODUCTS CORP has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. We anticipate the company beginning to experience more growth in the coming year. During the past fiscal year, MARINE PRODUCTS CORP's EPS of $0.19 remained unchanged from the prior years' EPS of $0.19. This year, the market expects an improvement in earnings ($0.25 versus $0.19).
  • Net operating cash flow has increased to $9.33 million or 38.89% when compared to the same quarter last year. Despite an increase in cash flow, MARINE PRODUCTS CORP's cash flow growth rate is still lower than the industry average growth rate of 58.58%.

You can view the full analysis from the report here: Marine Products 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.

Entertainment Gaming Asia ( EGT) was another company that pushed the Consumer Durables industry higher today. Entertainment Gaming Asia was up $0.02 (3.0%) to $0.68 on light volume. Throughout the day, 5,312 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 15,100 shares. The stock ranged in a price between $0.68-$0.69 after having opened the day at $0.68 as compared to the previous trading day's close of $0.66.

Entertainment Gaming Asia Inc. engages in the ownership and leasing of electronic gaming machines (EGMs) in resorts, hotels, and other venues primarily in Cambodia and the Philippines. Entertainment Gaming Asia has a market cap of $19.0 million and is part of the consumer goods sector. Shares are down 49.2% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Entertainment Gaming Asia a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Entertainment Gaming Asia as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on EGT go as follows:

  • ENTERTAINMENT GAMING ASIA 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, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.17 versus $0.07 in the prior year.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, ENTERTAINMENT GAMING ASIA's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ENTERTAINMENT GAMING ASIA is currently extremely low, coming in at 13.85%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -20.97% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 61.15%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • EGT, with its decline in revenue, underperformed when compared the industry average of 6.0%. Since the same quarter one year prior, revenues fell by 29.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Entertainment Gaming Asia 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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