3 Stocks Advancing The Consumer Non-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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 88 points (0.5%) at 16,582 as of Monday, Aug. 4, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,528 issues advancing vs. 1,497 declining with 145 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 0.4% versus the S&P 500, which was up 0.9%. Top gainers within the Consumer Non-Durables industry included China Xiniya Fashion ( XNY), up 6.0%, Ever-Glory International Group ( EVK), up 2.4%, Northern Technologies International ( NTIC), up 2.9%, Female Health ( FHCO), up 2.8% and Tredegar ( TG), up 6.2%.

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

Female Health ( FHCO) is one of the companies that pushed the Consumer Non-Durables industry higher today. Female Health was up $0.11 (2.8%) to $4.01 on average volume. Throughout the day, 249,459 shares of Female Health exchanged hands as compared to its average daily volume of 219,100 shares. The stock ranged in a price between $3.86-$4.07 after having opened the day at $3.94 as compared to the previous trading day's close of $3.90.

The Female Health Company manufactures, markets, and distributes consumer health care products. It offers the FC2 female condom that provides women dual protection against unintended pregnancy and sexually transmitted infections, including HIV/AIDS; and male condoms. Female Health has a market cap of $112.9 million and is part of the consumer goods sector. Shares are down 54.1% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Female Health 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 Female Health 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, expanding profit margins and notable return on equity. 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.

Highlights from TheStreet Ratings analysis on FHCO go as follows:

  • FHCO 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, FHCO has a quick ratio of 1.67, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for FEMALE HEALTH CO is rather high; currently it is at 58.19%. Regardless of FHCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FHCO's net profit margin of 8.62% compares favorably to the industry average.
  • FHCO, with its very weak revenue results, has greatly underperformed against the industry average of 1.5%. Since the same quarter one year prior, revenues plummeted by 54.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Personal Products industry. The net income has significantly decreased by 89.3% when compared to the same quarter one year ago, falling from $3.49 million to $0.38 million.
  • Net operating cash flow has significantly decreased to -$0.02 million or 100.40% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Female Health 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, Northern Technologies International ( NTIC) was up $0.59 (2.9%) to $20.80 on average volume. Throughout the day, 8,740 shares of Northern Technologies International exchanged hands as compared to its average daily volume of 6,500 shares. The stock ranged in a price between $20.10-$20.80 after having opened the day at $20.10 as compared to the previous trading day's close of $20.21.

Northern Technologies International Corporation develops, markets, and sells rust and corrosion inhibiting products and services under the ZERUST brand name to the automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets. Northern Technologies International has a market cap of $91.8 million and is part of the consumer goods sector. Shares are up 8.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Northern Technologies International 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 Northern Technologies International as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on NTIC go as follows:

  • NTIC's revenue growth has slightly outpaced the industry average of 8.5%. Since the same quarter one year prior, revenues rose by 17.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • NTIC 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. Along with this, the company maintains a quick ratio of 4.13, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, NTIC's share price has jumped by 59.55%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NTIC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Chemicals industry average. The net income increased by 5.7% when compared to the same quarter one year prior, going from $0.93 million to $0.98 million.
  • Net operating cash flow has significantly increased by 543.44% to $2.95 million when compared to the same quarter last year. In addition, NORTHERN TECH INTL has also vastly surpassed the industry average cash flow growth rate of -14.28%.

You can view the full analysis from the report here: Northern Technologies International 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 Xiniya Fashion ( XNY) was another company that pushed the Consumer Non-Durables industry higher today. China Xiniya Fashion was up $0.05 (6.0%) to $0.88 on light volume. Throughout the day, 9,000 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 33,100 shares. The stock ranged in a price between $0.80-$0.88 after having opened the day at $0.84 as compared to the previous trading day's close of $0.83.

China Xiniya Fashion Limited designs, manufactures, and sells men's business casual and business formal apparel and accessories to retail customers in the People's Republic of China. China Xiniya Fashion has a market cap of $49.0 million and is part of the consumer goods sector. Shares are down 36.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate China Xiniya Fashion a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates China Xiniya Fashion 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 XNY go as follows:

  • XNY 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. Along with this, the company maintains a quick ratio of 9.03, which clearly demonstrates the ability to cover short-term cash needs.
  • XNY, with its decline in revenue, underperformed when compared the industry average of 8.3%. Since the same quarter one year prior, revenues slightly dropped by 7.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 Textiles, Apparel & Luxury Goods industry. The net income has decreased by 20.0% when compared to the same quarter one year ago, dropping from $5.35 million to $4.28 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. In comparison to the other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, CHINA XINIYA FASHION LTD-ADR'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: China Xiniya Fashion 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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