3 Stocks Pushing The Consumer Goods Sector Lower

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.

The Consumer Goods sector as a whole closed the day up 0.2% versus the S&P 500, which was up 0.1%. Laggards within the Consumer Goods sector included Crystal Rock Holdings ( CRVP), down 2.5%, China Shengda Packaging Group ( CPGI), down 2.1%, Entertainment Gaming Asia ( EGT), down 6.0%, Ocean Bio-Chem ( OBCI), down 3.8% and Fuwei Films (Holdings ( FFHL), down 3.9%.

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

Fuwei Films (Holdings ( FFHL) is one of the companies that pushed the Consumer Goods sector lower today. Fuwei Films (Holdings was down $0.05 (3.9%) to $1.24 on heavy volume. Throughout the day, 48,504 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 17,400 shares. The stock ranged in price between $1.22-$1.34 after having opened the day at $1.24 as compared to the previous trading day's close of $1.29.

Fuwei Films (Holdings) Co., Ltd., through its subsidiary, Fuwei Films (Shandong) Co., Ltd., develops, manufactures, and distributes plastic films using the biaxially- oriented stretch technique in the People's Republic of China. Fuwei Films (Holdings has a market cap of $15.6 million and is part of the industrial industry. Shares are up 15.2% year-to-date as of the close of trading on Wednesday.

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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 6.5%. 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

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At the close, Entertainment Gaming Asia ( EGT) was down $0.05 (6.0%) to $0.78 on light volume. Throughout the day, 675 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 9,700 shares. The stock ranged in price between $0.76-$0.78 after having opened the day at $0.76 as compared to the previous trading day's close of $0.83.

Entertainment Gaming Asia Inc. engages in the ownership and leasing of electronic gaming machines (EGMs) in resorts, hotels, and other venues primarily in Cambodia and the Philippines. Entertainment Gaming Asia has a market cap of $22.2 million and is part of the industrial industry. Shares are down 40.2% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Entertainment Gaming Asia 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 generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on EGT go as follows:

  • ENTERTAINMENT GAMING ASIA 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. During the past fiscal year, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.17 versus $0.07 in the prior year.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, ENTERTAINMENT GAMING ASIA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 59.10%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for ENTERTAINMENT GAMING ASIA is rather high; currently it is at 50.61%. Regardless of EGT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EGT's net profit margin of -20.97% significantly underperformed when compared to the industry average.
  • EGT, with its decline in revenue, underperformed when compared the industry average of 8.4%. Since the same quarter one year prior, revenues fell by 29.0%. 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: Entertainment Gaming Asia 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.

China Shengda Packaging Group ( CPGI) was another company that pushed the Consumer Goods sector lower today. China Shengda Packaging Group was down $0.02 (2.1%) to $0.95 on light volume. Throughout the day, 1,200 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 7,200 shares. The stock ranged in price between $0.94-$1.00 after having opened the day at $1.00 as compared to the previous trading day's close of $0.97.

China Shengda Packaging Group Inc., a paper packaging company, designs, manufactures, and sells flexo-printed and color-printed corrugated paper cartons of various sizes and strengths primarily in the People's Republic of China. China Shengda Packaging Group has a market cap of $36.9 million and is part of the industrial industry. Shares are up 11.8% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates China Shengda Packaging Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

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Highlights from TheStreet Ratings analysis on CPGI go as follows:

  • The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 19.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CPGI's debt-to-equity ratio is very low at 0.22 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 1.16, which illustrates the ability to avoid short-term cash problems.
  • 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 Containers & Packaging industry and the overall market, CHINA SHENGDA PACKAGING GP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA SHENGDA PACKAGING GP is rather low; currently it is at 19.13%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.66% trails that of the industry average.

You can view the full analysis from the report here: China Shengda Packaging Group 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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