3 Stocks Raising 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 81 points (0.5%) at 16,920 as of Tuesday, Aug. 19, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,954 issues advancing vs. 1,082 declining with 162 unchanged.

The Consumer Durables industry as a whole closed the day up 0.7% versus the S&P 500, which was up 0.5%. Top gainers within the Consumer Durables industry included Entertainment Gaming Asia ( EGT), up 3.6%, Global-Tech Advanced Innovations ( GAI), up 1.6%, Marine Products ( MPX), up 1.6%, Hooker Furniture ( HOFT), up 1.9% and Black Diamond ( BDE), up 10.7%.

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

Hooker Furniture ( HOFT) is one of the companies that pushed the Consumer Durables industry higher today. Hooker Furniture was up $0.28 (1.9%) to $14.88 on light volume. Throughout the day, 19,960 shares of Hooker Furniture exchanged hands as compared to its average daily volume of 60,200 shares. The stock ranged in a price between $14.71-$14.94 after having opened the day at $14.71 as compared to the previous trading day's close of $14.60.

Hooker Furniture Corporation, a home furnishings marketing, design, and logistics company, together with its subsidiaries, designs, imports, manufactures, and markets residential household furniture products principally in North America. Hooker Furniture has a market cap of $158.4 million and is part of the consumer goods sector. Shares are down 11.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Hooker Furniture a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Hooker Furniture as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on HOFT go as follows:

  • 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 31.9% when compared to the same quarter one year prior, rising from $2.13 million to $2.80 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HOFT 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 4.51, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 150.46% to $10.00 million when compared to the same quarter last year. In addition, HOOKER FURNITURE CORP has also vastly surpassed the industry average cash flow growth rate of 39.67%.

You can view the full analysis from the report here: Hooker Furniture 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, Marine Products ( MPX) was up $0.13 (1.6%) to $8.13 on average volume. Throughout the day, 12,976 shares of Marine Products exchanged hands as compared to its average daily volume of 15,200 shares. The stock ranged in a price between $7.98-$8.17 after having opened the day at $8.00 as compared to the previous trading day's close of $8.00.

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats in the sportboat, deckboat, cruiser, sport yacht, and sport fishing markets worldwide. Marine Products has a market cap of $303.4 million and is part of the consumer goods sector. Shares are down 20.4% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Marine Products a buy, no analysts rate it a sell, and 2 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 Marine Products as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • MPX's revenue growth has slightly outpaced the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 13.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 Leisure Equipment & Products industry. The net income increased by 55.7% when compared to the same quarter one year prior, rising from $1.94 million to $3.01 million.
  • MARINE PRODUCTS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. We anticipate the company beginning to experience more growth in the coming year. During the past fiscal year, MARINE PRODUCTS CORP's EPS of $0.19 remained unchanged from the prior years' EPS of $0.19. This year, the market expects an improvement in earnings ($0.28 versus $0.19).
  • MPX 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.97 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Leisure Equipment & Products industry and the overall market, MARINE PRODUCTS 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: Marine Products 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.

Entertainment Gaming Asia ( EGT) was another company that pushed the Consumer Durables industry higher today. Entertainment Gaming Asia was up $0.02 (3.6%) to $0.58 on average volume. Throughout the day, 13,669 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in a price between $0.55-$0.59 after having opened the day at $0.55 as compared to the previous trading day's close of $0.56.

Entertainment Gaming Asia Inc., a gaming company, owns and leases electronic gaming machines (EGMs) in resorts, hotels, and other venues in Cambodia and the Philippines. It operates in two segments, Gaming Operations and Gaming Products. Entertainment Gaming Asia has a market cap of $17.8 million and is part of the consumer goods sector. Shares are down 52.4% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Entertainment Gaming Asia a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Entertainment Gaming Asia as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on EGT go as follows:

  • ENTERTAINMENT GAMING ASIA has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.17 versus $0.07 in the prior year.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, ENTERTAINMENT GAMING ASIA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 50.79%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for ENTERTAINMENT GAMING ASIA is rather high; currently it is at 50.61%. Regardless of EGT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EGT's net profit margin of -20.97% significantly underperformed when compared to the industry average.
  • EGT, with its decline in revenue, underperformed when compared the industry average of 5.4%. Since the same quarter one year prior, revenues fell by 29.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Entertainment Gaming Asia 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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