3 Stocks Pushing The Consumer Goods Sector 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 Goods sector as a whole closed the day up 0.3% versus the S&P 500, which was unchanged. Laggards within the Consumer Goods sector included CTI Industries ( CTIB), down 2.6%, China Shengda Packaging Group ( CPGI), down 2.4%, Crumbs Bake Shop ( CRMB), down 24.9%, Le Gaga Holdings ( GAGA), down 2.0% and Emerson Radio ( MSN), down 4.3%.

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

Crumbs Bake Shop ( CRMB) is one of the companies that pushed the Consumer Goods sector lower today. Crumbs Bake Shop was down $0.04 (24.9%) to $0.12 on heavy volume. Throughout the day, 593,928 shares of Crumbs Bake Shop exchanged hands as compared to its average daily volume of 123,200 shares. The stock ranged in price between $0.12-$0.16 after having opened the day at $0.16 as compared to the previous trading day's close of $0.16.

Crumbs Bake Shop, Inc. sells various cupcakes, cakes, cookies, and other baked goods under the trade name of Crumbs Bake Shop. It also sells hot and cold beverages. The company offers its products through company-operated stores, as well as through its Website crumbs.com. Crumbs Bake Shop has a market cap of $2.8 million and is part of the specialty retail industry. Shares are down 80.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Crumbs Bake Shop 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, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CRMB go as follows:

  • CRUMBS BAKE SHOP 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, CRUMBS BAKE SHOP INC reported poor results of -$1.31 versus -$0.91 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 Food & Staples Retailing industry. The net income has significantly decreased by 92.2% when compared to the same quarter one year ago, falling from -$1.98 million to -$3.80 million.
  • Net operating cash flow has significantly decreased to -$3.63 million or 156.85% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 75.79%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 94.11% 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.
  • CRMB, with its decline in revenue, underperformed when compared the industry average of 5.5%. Since the same quarter one year prior, revenues fell by 24.8%. 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: Crumbs Bake Shop Ratings Report

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At the close, China Shengda Packaging Group ( CPGI) was down $0.02 (2.4%) to $1.01 on light volume. Throughout the day, 6,141 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 9,700 shares. The stock ranged in price between $0.98-$1.03 after having opened the day at $1.03 as compared to the previous trading day's close of $1.03.

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 $40.0 million and is part of the specialty retail industry. Shares are up 21.4% year-to-date as of the close of trading on Friday.

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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.

Highlights from TheStreet Ratings analysis on CPGI go as follows:

  • The revenue growth came in higher than the industry average of 5.7%. 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.

CTI Industries ( CTIB) was another company that pushed the Consumer Goods sector lower today. CTI Industries was down $0.12 (2.6%) to $4.57 on average volume. Throughout the day, 1,900 shares of CTI Industries exchanged hands as compared to its average daily volume of 1,500 shares. The stock ranged in price between $4.57-$4.57 after having opened the day at $4.57 as compared to the previous trading day's close of $4.69.

CTI Industries Corporation develops, manufactures, and supplies flexible film products for novelty, packaging and container, and custom product applications worldwide. CTI Industries has a market cap of $15.7 million and is part of the specialty retail industry. Shares are down 19.7% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates CTI Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk, unimpressive growth in net income and poor profit margins.

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Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • In its most recent trading session, CTIB 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. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The debt-to-equity ratio of 1.30 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, CTIB has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • The change in net income from the same quarter one year ago has exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income has significantly decreased by 65.4% when compared to the same quarter one year ago, falling from $0.13 million to $0.05 million.
  • The gross profit margin for CTI INDUSTRIES CORP is currently lower than what is desirable, coming in at 27.08%. Regardless of CTIB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.30% trails the industry average.
  • 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. Compared to other companies in the Household Durables industry and the overall market, CTI INDUSTRIES CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: CTI Industries 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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