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 up 0.2% versus the S&P 500, which was up 0.1%. Laggards within the Consumer Non-Durables industry included Forward Industries ( FORD), down 2.4%, CCA Industries ( CAW), down 4.3%, Orient Paper ( ONP), down 3.5%, Ever-Glory International Group ( EVK), down 3.4% and Tandy Leather Factory ( TLF), down 2.2%.

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

China XD Plastics ( CXDC) is one of the companies that pushed the Consumer Non-Durables industry lower today. China XD Plastics was down $0.34 (4.5%) to $7.22 on light volume. Throughout the day, 274,557 shares of China XD Plastics exchanged hands as compared to its average daily volume of 593,300 shares. The stock ranged in price between $7.14-$7.82 after having opened the day at $7.52 as compared to the previous trading day's close of $7.56.

China XD Plastics Company Limited, a specialty chemical company, through its subsidiaries, is engaged in the research, development, manufacture, and sale of modified and engineering plastics product. China XD Plastics has a market cap of $339.7 million and is part of the consumer goods sector. Shares are up 43.7% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates China XD Plastics as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on CXDC go as follows:

  • The revenue growth came in higher than the industry average of 9.0%. Since the same quarter one year prior, revenues rose by 30.7%. 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.
  • Compared to its closing price of one year ago, CXDC's share price has jumped by 50.22%, 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, CXDC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Auto Components industry and the overall market, CHINA XD PLASTICS CO LTD's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has significantly increased by 217.44% to $35.12 million when compared to the same quarter last year. In addition, CHINA XD PLASTICS CO LTD has also vastly surpassed the industry average cash flow growth rate of -23.23%.

You can view the full analysis from the report here: China XD Plastics Ratings Report

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At the close, Tandy Leather Factory ( TLF) was down $0.21 (2.2%) to $9.32 on light volume. Throughout the day, 8,084 shares of Tandy Leather Factory exchanged hands as compared to its average daily volume of 22,200 shares. The stock ranged in price between $9.32-$9.53 after having opened the day at $9.47 as compared to the previous trading day's close of $9.53.

Tandy Leather Factory, Inc. is engaged in the retail and wholesale distribution of leather and related products. It operates through three segments: Wholesale Leathercraft, Retail Leathercraft, and International Leathercraft. Tandy Leather Factory has a market cap of $97.4 million and is part of the consumer goods sector. Shares are down 2.4% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Tandy Leather Factory as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on TLF go as follows:

  • TLF's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TANDY LEATHER FACTORY INC has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, TANDY LEATHER FACTORY INC increased its bottom line by earning $0.71 versus $0.55 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 8.3% when compared to the same quarter one year prior, going from $1.63 million to $1.77 million.
  • The gross profit margin for TANDY LEATHER FACTORY INC is rather high; currently it is at 66.73%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.96% is above that of the industry average.

You can view the full analysis from the report here: Tandy Leather Factory 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.

Orient Paper ( ONP) was another company that pushed the Consumer Non-Durables industry lower today. Orient Paper was down $0.07 (3.5%) to $1.95 on heavy volume. Throughout the day, 77,626 shares of Orient Paper exchanged hands as compared to its average daily volume of 34,300 shares. The stock ranged in price between $1.93-$2.04 after having opened the day at $2.02 as compared to the previous trading day's close of $2.02.

Orient Paper, Inc. produces and distributes packaging and printing paper products in the People's Republic of China. It operates through two segments, Orient Paper HB and Orient Paper Shengde. Orient Paper has a market cap of $39.0 million and is part of the consumer goods sector. Shares are down 21.8% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Orient Paper as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and poor profit margins.

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Highlights from TheStreet Ratings analysis on ONP go as follows:

  • The revenue growth came in higher than the industry average of 2.2%. Since the same quarter one year prior, revenues rose by 14.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Paper & Forest Products industry average, but is less than that of the S&P 500. The net income has decreased by 1.5% when compared to the same quarter one year ago, dropping from $3.66 million to $3.60 million.
  • ORIENT PAPER INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, ORIENT PAPER INC reported lower earnings of $0.71 versus $0.80 in the prior year.
  • The gross profit margin for ORIENT PAPER INC is rather low; currently it is at 16.14%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 9.52% is above that of the industry average.

You can view the full analysis from the report here: Orient Paper 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.

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