3 Consumer Goods Stocks Nudging The Sector 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 Goods sector as a whole closed the day up 1.1% versus the S&P 500, which was up 0.6%. Top gainers within the Consumer Goods sector included Entertainment Gaming Asia ( EGT), up 3.0%, Seneca Foods ( SENEB), up 12.1%, Truett-Hurst Inc Class A ( THST), up 1.8%, Crumbs Bake Shop ( CRMB), up 9.8% and Ocean Bio-Chem ( OBCI), up 5.6%.

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

Crumbs Bake Shop ( CRMB) is one of the companies that pushed the Consumer Goods sector higher today. Crumbs Bake Shop was up $0.02 (9.8%) to $0.28 on light volume. Throughout the day, 70,871 shares of Crumbs Bake Shop exchanged hands as compared to its average daily volume of 130,500 shares. The stock ranged in a price between $0.25-$0.28 after having opened the day at $0.26 as compared to the previous trading day's close of $0.26.

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 $3.2 million and is part of the electronics industry. Shares are down 68.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Crumbs Bake Shop 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 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 73.02%, 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 12.33%.
  • 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.

At the close, Truett-Hurst Inc Class A ( THST) was up $0.09 (1.8%) to $5.08 on heavy volume. Throughout the day, 8,377 shares of Truett-Hurst Inc Class A exchanged hands as compared to its average daily volume of 3,500 shares. The stock ranged in a price between $4.85-$5.09 after having opened the day at $4.93 as compared to the previous trading day's close of $4.99.

Truett-Hurst Inc Class A has a market cap of $18.3 million and is part of the electronics industry. Shares are up 19.7% year-to-date as of the close of trading on Wednesday.

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 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.

Entertainment Gaming Asia ( EGT) was another company that pushed the Consumer Goods sector 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 electronics industry. 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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