3 Consumer Durables Stocks Pushing Industry Growth

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 32 points (0.2%) at 16,953 as of Friday, June 20, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,583 issues advancing vs. 1,400 declining with 164 unchanged.

The Consumer Durables industry as a whole closed the day down 0.7% versus the S&P 500, which was up 0.2%. Top gainers within the Consumer Durables industry included Virco Manufacturing ( VIRC), up 6.0%, Koss ( KOSS), up 2.9%, Cobra Electronics ( COBR), up 8.2%, Gaming Partners International ( GPIC), up 2.3% and Kewaunee Scientific ( KEQU), up 1.8%.

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

Gaming Partners International ( GPIC) is one of the companies that pushed the Consumer Durables industry higher today. Gaming Partners International was up $0.18 (2.3%) to $8.13 on light volume. Throughout the day, 700 shares of Gaming Partners International exchanged hands as compared to its average daily volume of 4,800 shares. The stock ranged in a price between $8.04-$8.13 after having opened the day at $8.12 as compared to the previous trading day's close of $7.95.

Gaming Partners International Corporation, together with its subsidiaries, manufactures and supplies casino table game equipment to licensed casinos worldwide. Gaming Partners International has a market cap of $63.3 million and is part of the consumer goods sector. Shares are down 2.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Gaming Partners International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Gaming Partners International 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, good cash flow from operations and increase in stock price during the past year. 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 GPIC go as follows:

  • GPIC 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 3.91, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 155.04% to $0.51 million when compared to the same quarter last year. In addition, GAMING PARTNERS INTL CORP has also vastly surpassed the industry average cash flow growth rate of -3.08%.
  • GPIC, with its decline in revenue, underperformed when compared the industry average of 6.0%. Since the same quarter one year prior, revenues fell by 28.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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, GAMING PARTNERS INTL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GAMING PARTNERS INTL CORP is currently lower than what is desirable, coming in at 31.77%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -10.71% is significantly below that of the industry average.

You can view the full analysis from the report here: Gaming Partners International 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, Cobra Electronics ( COBR) was up $0.26 (8.2%) to $3.45 on average volume. Throughout the day, 7,098 shares of Cobra Electronics exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in a price between $3.25-$3.45 after having opened the day at $3.25 as compared to the previous trading day's close of $3.19.

Cobra Electronics Corporation designs and markets consumer electronics products in the United States, Canada, and Europe. Cobra Electronics has a market cap of $21.2 million and is part of the consumer goods sector. Shares are up 6.3% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Cobra Electronics 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 Cobra Electronics as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on COBR go as follows:

  • 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 Household Durables industry and the overall market, COBRA ELECTRONICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COBRA ELECTRONICS CORP is currently lower than what is desirable, coming in at 30.85%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.79% trails that of the industry average.
  • In its most recent trading session, COBR 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. 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.
  • COBRA ELECTRONICS CORP's earnings per share declined by 8.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, COBRA ELECTRONICS CORP swung to a loss, reporting -$0.17 versus $0.49 in the prior year. This year, the market expects an improvement in earnings (-$0.06 versus -$0.17).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income has decreased by 8.7% when compared to the same quarter one year ago, dropping from -$1.53 million to -$1.67 million.

You can view the full analysis from the report here: Cobra Electronics 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.

Virco Manufacturing ( VIRC) was another company that pushed the Consumer Durables industry higher today. Virco Manufacturing was up $0.15 (6.0%) to $2.65 on heavy volume. Throughout the day, 26,977 shares of Virco Manufacturing exchanged hands as compared to its average daily volume of 3,200 shares. The stock ranged in a price between $2.36-$2.65 after having opened the day at $2.50 as compared to the previous trading day's close of $2.50.

Virco Mfg. Corporation is engaged in the design, production, and distribution of furniture for the commercial and education markets in the United States. Virco Manufacturing has a market cap of $36.8 million and is part of the consumer goods sector. Shares are up 9.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Virco Manufacturing a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Virco Manufacturing as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from TheStreet Ratings analysis on VIRC go as follows:

  • 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 Commercial Services & Supplies industry and the overall market, VIRCO MFG. CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, VIRC 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. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry average. The net income increased by 17.2% when compared to the same quarter one year prior, going from $2.91 million to $3.41 million.
  • VIRC's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems.
  • 37.39% is the gross profit margin for VIRCO MFG. CORP which we consider to be strong. 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 5.73% trails the industry average.

You can view the full analysis from the report here: Virco Manufacturing 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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