3 Consumer Non-Durables Stocks Pushing Industry Growth

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All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 134.49 points (-0.8%) at 16,435 as of Tuesday, Aug. 5, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 814 issues advancing vs. 2,221 declining with 117 unchanged.

The Consumer Non-Durables industry as a whole was unchanged today versus the S&P 500, which was down 0.9%. Top gainers within the Consumer Non-Durables industry included China Xiniya Fashion ( XNY), up 3.7%, STR Holdings ( STRI), up 2.3%, Superior Uniform Group ( SGC), up 5.7%, Weyco Group ( WEYS), up 2.1% and Swisher Hygiene ( SWSH), up 1.5%.

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

Weyco Group ( WEYS) is one of the companies that pushed the Consumer Non-Durables industry higher today. Weyco Group was up $0.53 (2.1%) to $26.27 on light volume. Throughout the day, 7,866 shares of Weyco Group exchanged hands as compared to its average daily volume of 13,000 shares. The stock ranged in a price between $25.70-$26.70 after having opened the day at $25.72 as compared to the previous trading day's close of $25.74.

Weyco Group, Inc., together with its subsidiaries, is engaged in the distribution and retail of footwear. It operates in two segments, North American Wholesale and North American Retail. Weyco Group has a market cap of $282.9 million and is part of the consumer goods sector. Shares are down 12.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Weyco Group a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Weyco Group as a buy. 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, good cash flow from operations, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on WEYS go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.0%. Since the same quarter one year prior, revenues slightly increased by 1.8%. 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.
  • WEYS's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.85, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 125.32% to $8.30 million when compared to the same quarter last year. In addition, WEYCO GROUP INC has also vastly surpassed the industry average cash flow growth rate of -14.05%.
  • The net income growth from the same quarter one year ago has exceeded that of the Distributors industry average, but is less than that of the S&P 500. The net income increased by 0.1% when compared to the same quarter one year prior, going from $3.20 million to $3.21 million.
  • 37.88% is the gross profit margin for WEYCO GROUP INC which we consider to be strong. Regardless of WEYS'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 4.27% trails the industry average.

You can view the full analysis from the report here: Weyco Group Ratings Report

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3 Stocks Advancing The Consumer Non-Durables Industry