3 Stocks Pushing The Consumer Durables Industry Lower

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The Consumer Durables industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.7%. Laggards within the Consumer Durables industry included Cobra Electronics ( COBR), down 2.8%, Emerson Radio ( MSN), down 2.9%, Stanley Furniture ( STLY), down 1.8%, Ballantyne Strong ( BTN), down 2.6% and Marine Products ( MPX), down 3.6%.

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

Ballantyne Strong ( BTN) is one of the companies that pushed the Consumer Durables industry lower today. Ballantyne Strong was down $0.11 (2.6%) to $4.00 on average volume. Throughout the day, 29,596 shares of Ballantyne Strong exchanged hands as compared to its average daily volume of 39,000 shares. The stock ranged in price between $4.00-$4.14 after having opened the day at $4.14 as compared to the previous trading day's close of $4.11.

Ballantyne Strong, Inc. designs, integrates, and installs technology solutions for retail, financial, government, and cinema markets worldwide. The company operates in two segments, Systems Integration and Managed Services. Ballantyne Strong has a market cap of $60.1 million and is part of the consumer goods sector. Shares are down 8.2% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Ballantyne Strong as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, 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 BTN go as follows:

  • BTN 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. To add to this, BTN has a quick ratio of 2.45, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The revenue fell significantly faster than the industry average of 14.6%. Since the same quarter one year prior, revenues fell by 20.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • In its most recent trading session, BTN 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. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 Media industry. The net income has significantly decreased by 205.1% when compared to the same quarter one year ago, falling from $0.57 million to -$0.59 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. Compared to other companies in the Media industry and the overall market, BALLANTYNE STRONG INC'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: Ballantyne Strong Ratings Report

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At the close, Stanley Furniture ( STLY) was down $0.05 (1.8%) to $2.78 on light volume. Throughout the day, 2,477 shares of Stanley Furniture exchanged hands as compared to its average daily volume of 43,800 shares. The stock ranged in price between $2.78-$2.87 after having opened the day at $2.84 as compared to the previous trading day's close of $2.83.

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 $43.5 million and is part of the consumer goods sector. Shares are down 26.3% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Stanley Furniture a buy, no analysts rate it a sell, and 1 rates it a hold.

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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 27.75%, 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

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Cobra Electronics ( COBR) was another company that pushed the Consumer Durables industry lower today. Cobra Electronics was down $0.11 (2.8%) to $3.88 on average volume. Throughout the day, 6,180 shares of Cobra Electronics exchanged hands as compared to its average daily volume of 7,400 shares. The stock ranged in price between $3.87-$3.93 after having opened the day at $3.87 as compared to the previous trading day's close of $3.99.

Cobra Electronics Corporation designs and markets consumer electronics products in the United States, Canada, and Europe. Cobra Electronics has a market cap of $25.9 million and is part of the consumer goods sector. Shares are up 29.9% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Cobra Electronics 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 poor profit margins.

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Highlights from TheStreet Ratings analysis on COBR go as follows:

  • COBRA ELECTRONICS CORP's earnings per share declined by 8.7% in the most recent quarter compared to 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, COBRA ELECTRONICS CORP swung to a loss, reporting -$0.17 versus $0.49 in the prior year.
  • 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. Compared to other companies in the Household Durables industry and the overall market, COBRA ELECTRONICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COBRA ELECTRONICS CORP is currently lower than what is desirable, coming in at 30.85%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.79% trails that of the industry average.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income has decreased by 8.7% when compared to the same quarter one year ago, dropping from -$1.53 million to -$1.67 million.
  • COBR, with its decline in revenue, underperformed when compared the industry average of 17.4%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. 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: Cobra Electronics 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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