3 Stocks Advancing The Consumer 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.

One out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 1.09 points (0.0%) at 17,086 as of Thursday, July 24, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,410 issues advancing vs. 1,558 declining with 167 unchanged.

The Consumer Durables industry as a whole closed the day down 0.2% versus the S&P 500, which was up 0.1%. Top gainers within the Consumer Durables industry included Virco Manufacturing ( VIRC), up 7.0%, Cobra Electronics ( COBR), up 4.0%, SGOCO Group ( SGOC), up 1.6%, Bassett Furniture Industries ( BSET), up 2.4% and Black Diamond ( BDE), up 1.7%.

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

Bassett Furniture Industries ( BSET) is one of the companies that pushed the Consumer Durables industry higher today. Bassett Furniture Industries was up $0.35 (2.4%) to $14.93 on average volume. Throughout the day, 71,129 shares of Bassett Furniture Industries exchanged hands as compared to its average daily volume of 72,700 shares. The stock ranged in a price between $14.58-$15.00 after having opened the day at $14.76 as compared to the previous trading day's close of $14.58.

Bassett Furniture Industries, Incorporated manufactures, imports, and retails home furnishings in the United States. The company operates in three segments: Wholesale, Retail, and Investments and Real Estate. Bassett Furniture Industries has a market cap of $164.0 million and is part of the services sector. Shares are down 4.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Bassett Furniture Industries a buy, no analysts rate it a sell, and none 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 Bassett Furniture Industries as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on BSET go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 30.6% when compared to the same quarter one year prior, rising from $1.95 million to $2.55 million.
  • BSET's revenue growth trails the industry average of 17.7%. Since the same quarter one year prior, revenues slightly increased by 4.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BSET's debt-to-equity ratio is very low at 0.02 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 1.05, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for BASSETT FURNITURE INDS is rather high; currently it is at 55.24%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 2.99% is above that of the industry average.
  • Net operating cash flow has significantly increased by 891.92% to $8.48 million when compared to the same quarter last year. In addition, BASSETT FURNITURE INDS has also vastly surpassed the industry average cash flow growth rate of 209.23%.

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

At the close, Cobra Electronics ( COBR) was up $0.16 (4.0%) to $4.12 on heavy volume. Throughout the day, 31,574 shares of Cobra Electronics exchanged hands as compared to its average daily volume of 7,600 shares. The stock ranged in a price between $3.90-$4.20 after having opened the day at $3.91 as compared to the previous trading day's close of $3.96.

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 services sector. Shares are up 31.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Cobra Electronics a buy, no analysts rate it a sell, and none 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 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.

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 17.7%. 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.

Virco Manufacturing ( VIRC) was another company that pushed the Consumer Durables industry higher today. Virco Manufacturing was up $0.16 (7.0%) to $2.46 on heavy volume. Throughout the day, 30,338 shares of Virco Manufacturing exchanged hands as compared to its average daily volume of 7,200 shares. The stock ranged in a price between $2.22-$2.47 after having opened the day at $2.28 as compared to the previous trading day's close of $2.30.

Virco Mfg. Corporation is engaged in the design, production, and distribution of furniture for the commercial and education markets in the United States. Virco Manufacturing has a market cap of $34.6 million and is part of the services sector. Shares are up 0.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Virco Manufacturing a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Virco Manufacturing as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on VIRC go as follows:

  • In its most recent trading session, VIRC 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 net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Services & Supplies industry average, but is greater than that of the S&P 500. The net income increased by 13.3% when compared to the same quarter one year prior, going from -$4.45 million to -$3.86 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, VIRCO MFG. CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is somewhat low, currently at 0.85, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.27 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 39.30% is the gross profit margin for VIRCO MFG. CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -16.38% is in-line with the industry average.

You can view the full analysis from the report here: Virco Manufacturing 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.

More from Markets

LIVE BLOG: Cohen Pleads Guilty, Manafort Found Guilty -- Any Market Impact?

LIVE BLOG: Cohen Pleads Guilty, Manafort Found Guilty -- Any Market Impact?

Azealia Banks Confirms Elon Musk Smokes Weed

Azealia Banks Confirms Elon Musk Smokes Weed

Kohl's CEO: Getting Great Feedback From Amazon Partnership

Kohl's CEO: Getting Great Feedback From Amazon Partnership

Coal Stocks Set to Climb as Trump Extends Olive Branch to Miners

Coal Stocks Set to Climb as Trump Extends Olive Branch to Miners

Stocks Trim Gains At Close After S&P 500 Sets Intraday High

Stocks Trim Gains At Close After S&P 500 Sets Intraday High