3 Stocks Advancing The Consumer Durables Industry

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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.

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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

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