3 Stocks Pushing 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 49 points (0.3%) at 16,867 as of Wednesday, June 25, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,840 issues advancing vs. 1,188 declining with 141 unchanged.

The Consumer Goods sector as a whole closed the day up 0.3% versus the S&P 500, which was up 0.5%. Top gainers within the Consumer Goods sector included Entertainment Gaming Asia ( EGT), up 3.8%, Koss ( KOSS), up 1.9%, China Xiniya Fashion ( XNY), up 3.2%, Gaming Partners International ( GPIC), up 2.2% and Kewaunee Scientific ( KEQU), up 3.6%.

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

Gaming Partners International ( GPIC) is one of the companies that pushed the Consumer Goods sector higher today. Gaming Partners International was up $0.18 (2.2%) to $8.17 on light volume. Throughout the day, 3,200 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 $7.93-$8.17 after having opened the day at $7.98 as compared to the previous trading day's close of $7.99.

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 $65.0 million and is part of the food & beverage industry. Shares are down 2.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Gaming Partners International 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 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 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 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 -3.05%.
  • 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, China Xiniya Fashion ( XNY) was up $0.03 (3.2%) to $0.96 on average volume. Throughout the day, 53,189 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 39,800 shares. The stock ranged in a price between $0.93-$0.96 after having opened the day at $0.93 as compared to the previous trading day's close of $0.93.

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 $53.5 million and is part of the food & beverage industry. Shares are down 29.0% year-to-date as of the close of trading on Tuesday. 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.

Entertainment Gaming Asia ( EGT) was another company that pushed the Consumer Goods sector higher today. Entertainment Gaming Asia was up $0.03 (3.8%) to $0.82 on average volume. Throughout the day, 14,400 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 10,200 shares. The stock ranged in a price between $0.73-$0.82 after having opened the day at $0.77 as compared to the previous trading day's close of $0.79.

Entertainment Gaming Asia Inc. engages in the ownership and leasing of electronic gaming machines (EGMs) in resorts, hotels, and other venues primarily in Cambodia and the Philippines. Entertainment Gaming Asia has a market cap of $26.5 million and is part of the food & beverage industry. Shares are down 34.7% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Entertainment Gaming Asia a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Entertainment Gaming Asia as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on EGT go as follows:

  • ENTERTAINMENT GAMING ASIA 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, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.17 versus $0.07 in the prior year.
  • 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, ENTERTAINMENT GAMING ASIA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.50%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for ENTERTAINMENT GAMING ASIA is rather high; currently it is at 50.61%. Regardless of EGT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EGT's net profit margin of -20.97% significantly underperformed when compared to the industry average.
  • EGT, with its decline in revenue, underperformed when compared the industry average of 6.0%. Since the same quarter one year prior, revenues fell by 29.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Entertainment Gaming Asia 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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