3 Stocks Pushing The Food & Beverage Industry Lower

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The Food & Beverage industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.9%. Laggards within the Food & Beverage industry included Seneca Foods ( SENEB), down 4.0%, Crumbs Bake Shop ( CRMB), down 2.9%, Agria ( GRO), down 2.1%, S&W Seed Company ( SANW), down 2.5% and Castle Brands ( ROX), down 2.2%.

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

S&W Seed Company ( SANW) is one of the companies that pushed the Food & Beverage industry lower today. S&W Seed Company was down $0.16 (2.5%) to $6.37 on average volume. Throughout the day, 57,386 shares of S&W Seed Company exchanged hands as compared to its average daily volume of 68,700 shares. The stock ranged in price between $6.37-$6.82 after having opened the day at $6.50 as compared to the previous trading day's close of $6.53.

S&W Seed Company is engaged in breeding, growing, processing, and selling agricultural commodities. The company primarily offers alfalfa seeds, as well as wheat and small grains. The company also offers seed cleaning and processing services for other seed manufacturers. S&W Seed Company has a market cap of $73.6 million and is part of the consumer goods sector. Shares are down 6.0% year-to-date as of the close of trading on Wednesday. Currently there are 6 analysts who rate S&W Seed Company a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates S&W Seed Company as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on SANW go as follows:

  • SANW's very impressive revenue growth greatly exceeded the industry average of 3.7%. Since the same quarter one year prior, revenues leaped by 93.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 78.7% when compared to the same quarter one year prior, rising from -$1.87 million to -$0.40 million.
  • S&W SEED CO reported significant earnings per share improvement 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, S&W SEED CO swung to a loss, reporting -$0.26 versus $0.07 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$0.26).
  • The gross profit margin for S&W SEED CO is rather low; currently it is at 20.27%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, SANW's net profit margin of -4.89% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly decreased to -$1.11 million or 190.54% 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: S&W Seed Company Ratings Report

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At the close, Agria ( GRO) was down $0.03 (2.1%) to $1.39 on light volume. Throughout the day, 21,201 shares of Agria exchanged hands as compared to its average daily volume of 74,100 shares. The stock ranged in price between $1.39-$1.43 after having opened the day at $1.43 as compared to the previous trading day's close of $1.42.

Agria has a market cap of $79.2 million and is part of the consumer goods sector. Shares are down 3.4% year-to-date as of the close of trading on Wednesday.

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Highlights from TheStreet Ratings analysis on GRO go as follows:

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

Crumbs Bake Shop ( CRMB) was another company that pushed the Food & Beverage industry lower today. Crumbs Bake Shop was down $0.01 (2.9%) to $0.29 on light volume. Throughout the day, 66,539 shares of Crumbs Bake Shop exchanged hands as compared to its average daily volume of 131,500 shares. The stock ranged in price between $0.27-$0.32 after having opened the day at $0.30 as compared to the previous trading day's close of $0.30.

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 $3.5 million and is part of the consumer goods sector. Shares are down 62.8% year-to-date as of the close of trading on Wednesday.

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.

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 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 77.78%, 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.
  • The net income growth from the same quarter one year ago has 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.
  • 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 11.79%.

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.

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