3 Consumer Non-Durables Stocks Nudging The Industry Higher

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Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 11 points (0.1%) at 17,078 as of Wednesday, Sept. 3, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,398 issues advancing vs. 1,669 declining with 141 unchanged.

The Consumer Non-Durables industry as a whole closed the day down 0.4% versus the S&P 500, which was down 0.1%. Top gainers within the Consumer Non-Durables industry included Summer Infant ( SUMR), up 2.1%, Blyth ( BTH), up 36.0%, AEP Industries ( AEPI), up 2.6%, Veritiv ( VRTV), up 2.8% and Rock-Tenn Company ( RKT), up 1.9%.

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

AEP Industries ( AEPI) is one of the companies that pushed the Consumer Non-Durables industry higher today. AEP Industries was up $1.16 (2.6%) to $45.50 on light volume. Throughout the day, 19,707 shares of AEP Industries exchanged hands as compared to its average daily volume of 29,300 shares. The stock ranged in a price between $44.67-$45.50 after having opened the day at $44.67 as compared to the previous trading day's close of $44.34.

AEP Industries Inc. manufactures and markets plastic packaging films in North America. It offers a range of polyethylene and polyvinyl chloride flexible packaging products for consumer, industrial, and agricultural applications. AEP Industries has a market cap of $215.2 million and is part of the consumer goods sector. Shares are down 16.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate AEP Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates AEP Industries as a hold. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on AEPI go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 3.3%. 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.
  • The debt-to-equity ratio is very high at 4.87 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, AEPI's quick ratio is somewhat strong at 1.12, demonstrating the ability to handle short-term liquidity needs.
  • The gross profit margin for AEP INDUSTRIES INC is currently extremely low, coming in at 12.93%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.92% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$16.99 million or 183.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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

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