3 Stocks Advancing The Consumer Non-Durables Industry

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 143 points (0.9%) at 16,970 as of Tuesday, July 1, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,189 issues advancing vs. 849 declining with 140 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 1.1% versus the S&P 500, which was up 0.8%. Top gainers within the Consumer Non-Durables industry included Fuwei Films (Holdings ( FFHL), up 2.5%, Delta Apparel ( DLA), up 1.7%, Verso Paper ( VRS), up 6.7%, EveryWare Global ( EVRY), up 16.9% and UFP Technologies ( UFPT), up 5.4%.

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

Verso Paper ( VRS) is one of the companies that pushed the Consumer Non-Durables industry higher today. Verso Paper was up $0.14 (6.7%) to $2.24 on average volume. Throughout the day, 175,545 shares of Verso Paper exchanged hands as compared to its average daily volume of 149,600 shares. The stock ranged in a price between $2.10-$2.25 after having opened the day at $2.12 as compared to the previous trading day's close of $2.10.

Verso Paper Corp. produces and sells coated papers in the United States. The company offers coated groundwood paper used primarily for catalogs and magazines; and coated freesheet paper used primarily for annual reports, brochures, and magazine covers. Verso Paper has a market cap of $104.0 million and is part of the consumer goods sector. Shares are up 235.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Verso Paper a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Verso Paper as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on VRS go as follows:

  • 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 Paper & Forest Products industry. The net income has significantly decreased by 136.1% when compared to the same quarter one year ago, falling from -$38.38 million to -$90.61 million.
  • Net operating cash flow has decreased to -$96.28 million or 15.65% when compared to the same quarter last year. Despite a decrease in cash flow of 15.65%, VERSO PAPER CORP is in line with the industry average cash flow growth rate of -15.72%.
  • VRS, with its decline in revenue, slightly underperformed the industry average of 7.1%. Since the same quarter one year prior, revenues fell by 10.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • VERSO PAPER CORP 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. 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, VERSO PAPER CORP continued to lose money by earning -$2.09 versus -$3.29 in the prior year.
  • Compared to its closing price of one year ago, VRS's share price has jumped by 66.37%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in VRS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

You can view the full analysis from the report here: Verso Paper 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, Delta Apparel ( DLA) was up $0.24 (1.7%) to $14.56 on average volume. Throughout the day, 23,837 shares of Delta Apparel exchanged hands as compared to its average daily volume of 15,900 shares. The stock ranged in a price between $14.03-$14.59 after having opened the day at $14.23 as compared to the previous trading day's close of $14.32.

Delta Apparel has a market cap of $118.5 million and is part of the consumer goods sector. Shares are down 15.7% year-to-date as of the close of trading on Monday.

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 DLA go as follows:

You can view the full analysis from the report here: Delta Apparel 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.

Fuwei Films (Holdings ( FFHL) was another company that pushed the Consumer Non-Durables industry higher today. Fuwei Films (Holdings was up $0.03 (2.5%) to $1.25 on light volume. Throughout the day, 3,600 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 30,400 shares. The stock ranged in a price between $1.24-$1.25 after having opened the day at $1.24 as compared to the previous trading day's close of $1.22.

Fuwei Films (Holdings) Co., Ltd., together with its subsidiaries, engages in the development, manufacture, and distribution of plastic films using the biaxially- oriented stretch technique in the People's Republic of China. Fuwei Films (Holdings has a market cap of $15.5 million and is part of the consumer goods sector. Shares are up 8.9% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Fuwei Films (Holdings a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Fuwei Films (Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on FFHL 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 Chemicals industry and the overall market, FUWEI FILMS HOLDINGS CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FUWEI FILMS HOLDINGS CO is rather low; currently it is at 17.15%. Regardless of FFHL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, FFHL's net profit margin of -18.75% significantly underperformed when compared to the industry average.
  • FUWEI FILMS HOLDINGS CO has improved earnings per share by 27.3% 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, FUWEI FILMS HOLDINGS CO reported poor results of -$0.74 versus -$0.66 in the prior year.
  • FFHL, with its decline in revenue, underperformed when compared the industry average of 7.1%. Since the same quarter one year prior, revenues slightly dropped by 7.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.31 is very weak and demonstrates a lack of ability to pay short-term obligations.

You can view the full analysis from the report here: Fuwei Films (Holdings 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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