3 Stocks Pushing The Consumer Non-Durables Industry Lower

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The Consumer Non-Durables industry as a whole closed the day down 0.2% versus the S&P 500, which was down 0.1%. Laggards within the Consumer Non-Durables industry included Ocean Bio-Chem ( OBCI), down 3.2%, Exceed ( EDS), down 2.3%, Orient Paper ( ONP), down 3.5%, Northern Technologies International ( NTIC), down 2.1% and Fuwei Films (Holdings ( FFHL), down 3.1%.

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

Northern Technologies International ( NTIC) is one of the companies that pushed the Consumer Non-Durables industry lower today. Northern Technologies International was down $0.45 (2.1%) to $21.00 on average volume. Throughout the day, 6,509 shares of Northern Technologies International exchanged hands as compared to its average daily volume of 5,200 shares. The stock ranged in price between $20.78-$21.49 after having opened the day at $21.49 as compared to the previous trading day's close of $21.45.

Northern Technologies International Corporation develops, markets, and sells rust and corrosion inhibiting products and services under the ZERUST brand name to the automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets. Northern Technologies International has a market cap of $93.2 million and is part of the consumer goods sector. Shares are up 15.6% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Northern Technologies International as a buy. 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, expanding profit margins, good cash flow from operations and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from TheStreet Ratings analysis on NTIC go as follows:

  • NTIC's revenue growth has slightly outpaced the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 18.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NTIC 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 5.18, which clearly demonstrates the ability to cover short-term cash needs.
  • 36.82% is the gross profit margin for NORTHERN TECH INTL which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.48% is above that of the industry average.
  • Net operating cash flow has significantly increased by 332.97% to $3.95 million when compared to the same quarter last year. In addition, NORTHERN TECH INTL has also vastly surpassed the industry average cash flow growth rate of 35.32%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 136.2% when compared to the same quarter one year prior, rising from $0.43 million to $1.03 million.

You can view the full analysis from the report here: Northern Technologies International Ratings Report

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At the close, Orient Paper ( ONP) was down $0.08 (3.5%) to $2.20 on light volume. Throughout the day, 22,419 shares of Orient Paper exchanged hands as compared to its average daily volume of 33,600 shares. The stock ranged in price between $2.16-$2.27 after having opened the day at $2.27 as compared to the previous trading day's close of $2.28.

Orient Paper, Inc. produces and distributes packaging and printing paper products in the People's Republic of China. It operates through two segments, Orient Paper HB and Orient Paper Shengde. Orient Paper has a market cap of $40.7 million and is part of the consumer goods sector. Shares are down 14.3% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Orient Paper as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and attractive valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on ONP go as follows:

  • The revenue growth greatly exceeded the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 30.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 600.00% and other important driving factors, this stock has surged by 34.78% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • ONP's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.43 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 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. When compared to other companies in the Paper & Forest Products industry and the overall market, ORIENT PAPER INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for ORIENT PAPER INC is currently lower than what is desirable, coming in at 25.67%. Regardless of ONP's low profit margin, it has managed to increase from the same period last year.

You can view the full analysis from the report here: Orient Paper Ratings Report

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Exceed ( EDS) was another company that pushed the Consumer Non-Durables industry lower today. Exceed was down $0.04 (2.3%) to $1.69 on light volume. Throughout the day, 4,328 shares of Exceed exchanged hands as compared to its average daily volume of 35,800 shares. The stock ranged in price between $1.68-$1.72 after having opened the day at $1.68 as compared to the previous trading day's close of $1.73.

Exceed Company Ltd. is engaged in the design, development, and wholesale of footwear, apparel, and accessories under the brand name of Xidelong in the People's Republic of China. Exceed has a market cap of $57.3 million and is part of the consumer goods sector. Shares are up 4.8% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Exceed 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 attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on EDS go as follows:

  • The revenue growth came in higher than the industry average of 14.8%. Since the same quarter one year prior, revenues rose by 33.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EDS's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 12.21, which clearly demonstrates the ability to cover short-term cash needs.
  • EXCEED CO LTD reported significant earnings per share improvement 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, EXCEED CO LTD reported lower earnings of $0.33 versus $0.96 in the prior year.
  • The gross profit margin for EXCEED CO LTD is currently lower than what is desirable, coming in at 27.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.36% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$13.97 million or 293.04% 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: Exceed Ratings Report

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