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 down 0.3% versus the S&P 500, which was down 0.1%. Laggards within the Consumer Goods sector included China Shengda Packaging Group ( CPGI), down 2.1%, Cobra Electronics ( COBR), down 4.5%, Forward Industries ( FORD), down 5.0%, American Lorain ( ALN), down 1.6% and SGOCO Group ( SGOC), down 6.2%.

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

American Lorain ( ALN) is one of the companies that pushed the Consumer Goods sector lower today. American Lorain was down $0.02 (1.6%) to $1.22 on light volume. Throughout the day, 25,733 shares of American Lorain exchanged hands as compared to its average daily volume of 38,600 shares. The stock ranged in price between $1.18-$1.24 after having opened the day at $1.24 as compared to the previous trading day's close of $1.24.

American Lorain Corporation, through its subsidiaries, develops, manufactures, and sells various food products in the People's Republic of China. It provides chestnut products, including aerated open-bottom chestnuts, sweetheart chestnuts, chestnuts in syrup, and golden chestnut kernels. American Lorain has a market cap of $41.5 million and is part of the automotive industry. Shares are up 57.0% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates American Lorain as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, 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 ALN go as follows:

  • The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ALN has a quick ratio of 1.68, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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 Food Products industry. The net income has significantly decreased by 36.9% when compared to the same quarter one year ago, falling from $2.52 million to $1.59 million.
  • 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. In comparison to the other companies in the Food Products industry and the overall market, AMERICAN LORAIN CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: American Lorain Ratings Report

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At the close, Cobra Electronics ( COBR) was down $0.19 (4.5%) to $3.95 on average volume. Throughout the day, 7,676 shares of Cobra Electronics exchanged hands as compared to its average daily volume of 8,400 shares. The stock ranged in price between $3.95-$4.01 after having opened the day at $4.01 as compared to the previous trading day's close of $4.14.

Cobra Electronics Corporation designs and markets consumer electronics products in the United States, Canada, and Europe. Cobra Electronics has a market cap of $27.1 million and is part of the automotive industry. Shares are up 37.1% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Cobra Electronics as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on COBR go as follows:

  • COBR's revenue growth has slightly outpaced the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 12.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 104.5% when compared to the same quarter one year prior, rising from -$1.94 million to $0.09 million.
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that COBR's debt-to-equity ratio is low, the quick ratio, which is currently 0.61, displays a potential problem in covering short-term cash needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength 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 28.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.30% trails that of the industry average.

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.

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, 100 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 14,000 shares. The stock ranged in price between $0.95-$0.95 after having opened the day at $0.95 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 $37.6 million and is part of the automotive industry. Shares are up 14.1% year-to-date as of the close of trading on Thursday.

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 6.3%. 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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