3 Stocks Pushing The Consumer Non-Durables Industry Lower

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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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