3 Stocks Raising The Consumer Goods 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.

Two out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 5 points (0.0%) at 16,911 as of Thursday, June 19, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,514 issues advancing vs. 1,469 declining with 176 unchanged.

The Consumer Goods sector as a whole closed the day down 0.3% versus the S&P 500, which was up 0.1%. Top gainers within the Consumer Goods sector included CTI Industries ( CTIB), up 2.1%, China Xiniya Fashion ( XNY), up 2.8%, Agria ( GRO), up 4.5%, United-Guardian ( UG), up 2.5% and Standard Register ( SR), up 6.7%.

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

Agria ( GRO) is one of the companies that pushed the Consumer Goods sector higher today. Agria was up $0.06 (4.5%) to $1.40 on average volume. Throughout the day, 76,299 shares of Agria exchanged hands as compared to its average daily volume of 56,000 shares. The stock ranged in a price between $1.34-$1.41 after having opened the day at $1.38 as compared to the previous trading day's close of $1.34.

Agria has a market cap of $75.9 million and is part of the automotive industry. Shares are down 8.8% 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 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.

At the close, China Xiniya Fashion ( XNY) was up $0.03 (2.8%) to $0.97 on light volume. Throughout the day, 3,180 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 40,700 shares. The stock ranged in a price between $0.96-$0.98 after having opened the day at $0.98 as compared to the previous trading day's close of $0.95.

China Xiniya Fashion Limited designs, manufactures, and sells men's business casual and business formal apparel and accessories to retail customers in the People's Republic of China. China Xiniya Fashion has a market cap of $55.2 million and is part of the automotive industry. Shares are down 27.7% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate China Xiniya Fashion 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 China Xiniya Fashion 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 XNY go as follows:

  • XNY 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 this, the company maintains a quick ratio of 9.03, which clearly demonstrates the ability to cover short-term cash needs.
  • XNY, with its decline in revenue, underperformed when compared the industry average of 14.8%. Since the same quarter one year prior, revenues slightly dropped by 7.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Textiles, Apparel & Luxury Goods industry. The net income has decreased by 20.0% when compared to the same quarter one year ago, dropping from $5.35 million to $4.28 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 Textiles, Apparel & Luxury Goods industry and the overall market, CHINA XINIYA FASHION LTD-ADR'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: China Xiniya Fashion 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.

CTI Industries ( CTIB) was another company that pushed the Consumer Goods sector higher today. CTI Industries was up $0.10 (2.1%) to $4.80 on average volume. Throughout the day, 2,073 shares of CTI Industries exchanged hands as compared to its average daily volume of 1,800 shares. The stock ranged in a price between $4.80-$4.80 after having opened the day at $4.80 as compared to the previous trading day's close of $4.70.

CTI Industries Corporation develops, manufactures, and supplies flexible film products for novelty, packaging and container, and custom product applications worldwide. CTI Industries has a market cap of $15.6 million and is part of the automotive industry. Shares are down 19.5% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate CTI Industries a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CTI Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, relatively poor performance when compared with the S&P 500 during the past year, unimpressive growth in net income and poor profit margins.

Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • The debt-to-equity ratio of 1.30 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, CTIB has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • In its most recent trading session, CTIB has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • The change in net income from the same quarter one year ago has exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income has significantly decreased by 65.4% when compared to the same quarter one year ago, falling from $0.13 million to $0.05 million.
  • The gross profit margin for CTI INDUSTRIES CORP is currently lower than what is desirable, coming in at 27.08%. Regardless of CTIB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.30% trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Durables industry and the overall market, CTI INDUSTRIES CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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

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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