3 Stocks Pushing The Consumer 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 Durables industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.1%. Laggards within the Consumer Durables industry included Emerson Radio ( MSN), down 1.7%, Natuzzi SPA ( NTZ), down 1.6%, Stanley Furniture ( STLY), down 1.5%, Black Diamond ( BDE), down 1.7% and Skullcandy ( SKUL), down 1.7%.

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

Black Diamond ( BDE) is one of the companies that pushed the Consumer Durables industry lower today. Black Diamond was down $0.20 (1.7%) to $11.40 on light volume. Throughout the day, 34,229 shares of Black Diamond exchanged hands as compared to its average daily volume of 105,200 shares. The stock ranged in price between $11.31-$11.65 after having opened the day at $11.65 as compared to the previous trading day's close of $11.60.

Black Diamond, Inc., together with its subsidiaries, designs, manufactures, and markets outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing, cycling, and other outdoor recreation activities in the United States and internationally. Black Diamond has a market cap of $374.1 million and is part of the consumer goods sector. Shares are down 13.0% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts who rate Black Diamond a buy, no analysts rate it a sell, and 3 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 Black Diamond 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on BDE go as follows:

  • BDE's revenue growth has slightly outpaced the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BDE's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BDE has a quick ratio of 1.88, which demonstrates the ability of the company to cover short-term liquidity needs.
  • BLACK DIAMOND INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLACK DIAMOND INC swung to a loss, reporting -$0.19 versus $0.08 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.19).
  • 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 Leisure Equipment & Products industry and the overall market, BLACK DIAMOND INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$7.11 million or 355800.00% 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: Black Diamond 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, Stanley Furniture ( STLY) was down $0.04 (1.5%) to $2.57 on light volume. Throughout the day, 26,100 shares of Stanley Furniture exchanged hands as compared to its average daily volume of 46,500 shares. The stock ranged in price between $2.55-$2.63 after having opened the day at $2.61 as compared to the previous trading day's close of $2.61.

Stanley Furniture Company, Inc. designs, manufactures, and imports wood furniture for the residential market in the United States. Stanley Furniture has a market cap of $39.3 million and is part of the consumer goods sector. Shares are down 32.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Stanley Furniture a buy, no analysts rate it a sell, and 1 rates 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 Stanley Furniture as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, 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 STLY go as follows:

  • 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 Household Durables industry. The net income has significantly decreased by 110.6% when compared to the same quarter one year ago, falling from -$2.09 million to -$4.41 million.
  • 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 Household Durables industry and the overall market, STANLEY FURNITURE CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for STANLEY FURNITURE CO INC is currently extremely low, coming in at 11.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -20.14% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 34.15%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 106.66% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • STANLEY FURNITURE CO 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. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, STANLEY FURNITURE CO INC swung to a loss, reporting -$0.89 versus $2.09 in the prior year. This year, the market expects an improvement in earnings (-$0.66 versus -$0.89).

You can view the full analysis from the report here: Stanley Furniture 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.

Natuzzi SPA ( NTZ) was another company that pushed the Consumer Durables industry lower today. Natuzzi SPA was down $0.04 (1.6%) to $2.52 on light volume. Throughout the day, 5,049 shares of Natuzzi SPA exchanged hands as compared to its average daily volume of 27,500 shares. The stock ranged in price between $2.51-$2.58 after having opened the day at $2.51 as compared to the previous trading day's close of $2.56.

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. Natuzzi SPA has a market cap of $137.1 million and is part of the consumer goods sector. Shares are down 1.2% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Natuzzi SPA 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 and poor profit margins.

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 NTZ go as follows:

  • NATUZZI SPA 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, NATUZZI SPA reported poor results of -$1.71 versus -$0.63 in the prior year.
  • 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 Household Durables industry. The net income has significantly decreased by 75.6% when compared to the same quarter one year ago, falling from -$7.69 million to -$13.50 million.
  • 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 Household Durables industry and the overall market, NATUZZI SPA's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NATUZZI SPA is currently lower than what is desirable, coming in at 31.00%. Regardless of NTZ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, NTZ's net profit margin of -9.95% significantly underperformed when compared to the industry average.
  • NTZ, with its decline in revenue, underperformed when compared the industry average of 17.5%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Natuzzi SPA 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.

More from Markets

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet