3 Stocks Pushing The Consumer Non-Durables Industry 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 Non-Durables industry as a whole closed the day down 0.7% versus the S&P 500, which was up 0.1%. Laggards within the Consumer Non-Durables industry included China Shengda Packaging Group ( CPGI), down 2.0%, DS Healthcare Group ( DSKX), down 7.0%, Deswell Industries ( DSWL), down 4.2%, Superior Uniform Group ( SGC), down 2.6% and Tandy Leather Factory ( TLF), down 2.5%.

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

Deswell Industries ( DSWL) is one of the companies that pushed the Consumer Non-Durables industry lower today. Deswell Industries was down $0.09 (4.2%) to $2.05 on heavy volume. Throughout the day, 285,147 shares of Deswell Industries exchanged hands as compared to its average daily volume of 26,000 shares. The stock ranged in price between $2.01-$2.11 after having opened the day at $2.11 as compared to the previous trading day's close of $2.14.

Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. Deswell Industries has a market cap of $34.9 million and is part of the consumer goods sector. Shares are down 4.5% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Deswell Industries 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 generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on DSWL go as follows:

  • DESWELL INDUSTRIES INC 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, DESWELL INDUSTRIES INC reported poor results of -$0.47 versus -$0.12 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 56.1% when compared to the same quarter one year ago, falling from -$2.00 million to -$3.12 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. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, DESWELL INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DESWELL INDUSTRIES INC is currently extremely low, coming in at 2.51%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -39.28% is significantly below that of the industry average.
  • The share price of DESWELL INDUSTRIES INC has not done very well: it is down 20.00% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

You can view the full analysis from the report here: Deswell Industries Ratings Report

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At the close, DS Healthcare Group ( DSKX) was down $0.14 (7.0%) to $1.85 on average volume. Throughout the day, 11,873 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 12,300 shares. The stock ranged in price between $1.85-$1.96 after having opened the day at $1.87 as compared to the previous trading day's close of $1.99.

DS Healthcare Group has a market cap of $32.0 million and is part of the consumer goods sector. Shares are down 18.8% year-to-date as of the close of trading on Wednesday.

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Highlights from TheStreet Ratings analysis on DSKX go as follows:

You can view the full analysis from the report here: DS Healthcare Group 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.

China Shengda Packaging Group ( CPGI) was another company that pushed the Consumer Non-Durables industry lower today. China Shengda Packaging Group was down $0.02 (2.0%) to $0.99 on heavy volume. Throughout the day, 33,813 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 21,100 shares. The stock ranged in price between $0.95-$1.05 after having opened the day at $0.95 as compared to the previous trading day's close of $1.01.

China Shengda Packaging Group Inc., a paper packaging company, designs, manufactures, and sells flexo-printed and color-printed corrugated paper cartons of various sizes and strengths primarily in the People's Republic of China. China Shengda Packaging Group has a market cap of $37.2 million and is part of the consumer goods sector. Shares are up 12.9% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates China Shengda Packaging Group as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

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Highlights from TheStreet Ratings analysis on CPGI go as follows:

  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 19.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CPGI's debt-to-equity ratio is very low at 0.22 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 1.16, which illustrates the ability to avoid short-term cash problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Containers & Packaging industry and the overall market, CHINA SHENGDA PACKAGING GP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA SHENGDA PACKAGING GP is rather low; currently it is at 19.13%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.66% trails that of the industry average.

You can view the full analysis from the report here: China Shengda Packaging Group 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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