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 up 0.2%. Laggards within the Consumer Goods sector included Crystal Rock Holdings ( CRVP), down 1.7%, CTI Industries ( CTIB), down 4.5%, Global-Tech Advanced Innovations ( GAI), down 2.3%, DS Healthcare Group ( DSKX), down 14.2% and Cobra Electronics ( COBR), down 1.5%.

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

Cobra Electronics ( COBR) is one of the companies that pushed the Consumer Goods sector lower today. Cobra Electronics was down $0.06 (1.5%) to $3.87 on light volume. Throughout the day, 3,179 shares of Cobra Electronics exchanged hands as compared to its average daily volume of 8,300 shares. The stock ranged in price between $3.86-$3.93 after having opened the day at $3.90 as compared to the previous trading day's close of $3.93.

Cobra Electronics Corporation designs and markets consumer electronics products in the United States, Canada, and Europe. Cobra Electronics has a market cap of $25.9 million and is part of the industrial industry. Shares are up 30.1% year-to-date as of the close of trading on Tuesday.

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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 9.3%. 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.
  • COBRA ELECTRONICS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COBRA ELECTRONICS CORP swung to a loss, reporting -$0.17 versus $0.49 in the prior year. This year, the market expects an improvement in earnings ($0.25 versus -$0.17).
  • Powered by its strong earnings growth of 103.44% and other important driving factors, this stock has surged by 55.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • 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

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At the close, DS Healthcare Group ( DSKX) was down $0.18 (14.2%) to $1.12 on heavy volume. Throughout the day, 48,867 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 13,800 shares. The stock ranged in price between $1.01-$1.26 after having opened the day at $1.26 as compared to the previous trading day's close of $1.30.

DS Healthcare Group has a market cap of $20.6 million and is part of the industrial industry. Shares are down 47.8% year-to-date as of the close of trading on Tuesday.

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CTI Industries ( CTIB) was another company that pushed the Consumer Goods sector lower today. CTI Industries was down $0.19 (4.5%) to $4.06 on heavy volume. Throughout the day, 10,310 shares of CTI Industries exchanged hands as compared to its average daily volume of 2,600 shares. The stock ranged in price between $4.05-$4.35 after having opened the day at $4.06 as compared to the previous trading day's close of $4.25.

CTI Industries Corporation develops, manufactures, and supplies flexible film products for novelty, packaging and container, and custom product applications worldwide. CTI Industries has a market cap of $14.4 million and is part of the industrial industry. Shares are down 25.2% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates CTI Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income and poor profit margins.

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Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.00%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • 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 Household Durables industry. The net income has significantly decreased by 117.8% when compared to the same quarter one year ago, falling from -$0.06 million to -$0.12 million.
  • The gross profit margin for CTI INDUSTRIES CORP is rather low; currently it is at 22.99%. Regardless of CTIB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.92% trails the industry average.
  • 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. Compared to other companies in the Household Durables industry and the overall market, CTI INDUSTRIES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • CTI INDUSTRIES CORP 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CTI INDUSTRIES CORP increased its bottom line by earning $0.11 versus $0.03 in the prior year. This year, the market expects an improvement in earnings ($0.18 versus $0.11).

You can view the full analysis from the report here: CTI Industries Ratings Report

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