3 Stocks Pushing The Consumer Non-Durables Industry Lower

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The Consumer Non-Durables industry as a whole closed the day down 1.3% versus the S&P 500, which was down 0.4%. Laggards within the Consumer Non-Durables industry included CTI Industries ( CTIB), down 2.0%, Ever-Glory International Group ( EVK), down 5.2%, Weyco Group ( WEYS), down 4.0%, Verso Paper ( VRS), down 4.1% and Swisher Hygiene ( SWSH), down 4.0%.

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

Verso Paper ( VRS) is one of the companies that pushed the Consumer Non-Durables industry lower today. Verso Paper was down $0.11 (4.1%) to $2.56 on average volume. Throughout the day, 205,202 shares of Verso Paper exchanged hands as compared to its average daily volume of 140,100 shares. The stock ranged in price between $2.43-$2.70 after having opened the day at $2.58 as compared to the previous trading day's close of $2.67.

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 $145.0 million and is part of the consumer goods sector. Shares are up 326.8% year-to-date as of the close of trading on Wednesday.

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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

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