3 Stocks Driving The Consumer Durables Industry Higher

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.

Two out of the three major indices traded up today 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 30.21 points (-0.2%) at 16,882 as of Wednesday, July 30, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,028 issues advancing vs. 1,986 declining with 144 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 Ballantyne Strong ( BTN), up 2.9%, Johnson Outdoors ( JOUT), up 2.3%, Harbinger Group ( HRG), up 2.6%, Tuniu Corp ADR ( TOUR), up 1.8% and GoPro Inc Class A ( GPRO), up 3.8%.

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

Harbinger Group ( HRG) is one of the companies that pushed the Consumer Durables industry higher today. Harbinger Group was up $0.31 (2.6%) to $12.02 on light volume. Throughout the day, 523,462 shares of Harbinger Group exchanged hands as compared to its average daily volume of 708,400 shares. The stock ranged in a price between $11.78-$12.09 after having opened the day at $11.81 as compared to the previous trading day's close of $11.71.

Harbinger Group has a market cap of $1.7 billion and is part of the consumer goods sector. Shares are down 1.2% year-to-date as of the close of trading on Tuesday.

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Highlights from TheStreet Ratings analysis on HRG go as follows:

You can view the full analysis from the report here: Harbinger 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.

At the close, Johnson Outdoors ( JOUT) was up $0.52 (2.3%) to $23.32 on light volume. Throughout the day, 5,753 shares of Johnson Outdoors exchanged hands as compared to its average daily volume of 17,900 shares. The stock ranged in a price between $22.46-$23.55 after having opened the day at $22.88 as compared to the previous trading day's close of $22.80.

Johnson Outdoors Inc. manufactures and markets seasonal outdoor recreation products used for fishing, diving, paddling, hiking, and camping primarily in the United States, Canada, Europe, and the Pacific Basin. Johnson Outdoors has a market cap of $202.7 million and is part of the consumer goods sector. Shares are down 14.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Johnson Outdoors 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 Johnson Outdoors as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on JOUT go as follows:

  • JOUT's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, JOUT has a quick ratio of 1.92, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 72.49% to -$6.54 million when compared to the same quarter last year. Despite an increase in cash flow of 72.49%, JOHNSON OUTDOORS INC is still growing at a significantly lower rate than the industry average of 156.50%.
  • 41.49% is the gross profit margin for JOHNSON OUTDOORS INC which we consider to be strong. Regardless of JOUT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.95% trails the industry average.
  • JOUT, with its decline in revenue, underperformed when compared the industry average of 6.2%. Since the same quarter one year prior, revenues slightly dropped by 5.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Johnson Outdoors 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.

Ballantyne Strong ( BTN) was another company that pushed the Consumer Durables industry higher today. Ballantyne Strong was up $0.11 (2.9%) to $3.91 on average volume. Throughout the day, 28,436 shares of Ballantyne Strong exchanged hands as compared to its average daily volume of 37,300 shares. The stock ranged in a price between $3.84-$3.96 after having opened the day at $3.85 as compared to the previous trading day's close of $3.80.

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 $55.4 million and is part of the consumer goods sector. Shares are down 17.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Ballantyne Strong a buy, no analysts rate it a sell, and none rate it a hold.

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 12.5%. 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.
  • The share price of BALLANTYNE STRONG INC has not done very well: it is down 7.60% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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

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.

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