3 Stocks Pushing The Consumer Non-Durables Industry 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 Non-Durables industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.6%. Laggards within the Consumer Non-Durables industry included China Xiniya Fashion ( XNY), down 3.5%, Fuwei Films (Holdings ( FFHL), down 4.1%, Forward Industries ( FORD), down 5.1%, Standard Register ( SR), down 1.7% and Northern Technologies International ( NTIC), down 4.8%.

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

Standard Register ( SR) is one of the companies that pushed the Consumer Non-Durables industry lower today. Standard Register was down $0.09 (1.7%) to $5.28 on light volume. Throughout the day, 2,723 shares of Standard Register exchanged hands as compared to its average daily volume of 23,700 shares. The stock ranged in price between $5.22-$5.36 after having opened the day at $5.36 as compared to the previous trading day's close of $5.37.

Standard Register has a market cap of $44.6 million and is part of the consumer goods sector. Shares are down 21.9% year-to-date as of the close of trading on Wednesday.

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At the close, Fuwei Films (Holdings ( FFHL) was down $0.05 (4.1%) to $1.17 on heavy volume. Throughout the day, 40,888 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 24,900 shares. The stock ranged in price between $1.16-$1.26 after having opened the day at $1.24 as compared to the previous trading day's close of $1.22.

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 $15.9 million and is part of the consumer goods sector. Shares are up 8.9% 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 8.5%. 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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China Xiniya Fashion ( XNY) was another company that pushed the Consumer Non-Durables industry lower today. China Xiniya Fashion was down $0.03 (3.5%) to $0.82 on light volume. Throughout the day, 21,148 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 33,900 shares. The stock ranged in price between $0.80-$0.85 after having opened the day at $0.83 as compared to the previous trading day's close of $0.85.

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 $47.8 million and is part of the consumer goods sector. Shares are down 35.1% year-to-date as of the close of trading on Wednesday.

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.

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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

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