3 Consumer Non-Durables Stocks Pushing Industry Growth

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 68 points (0.4%) at 17,137 as of Friday, Sept. 5, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,903 issues advancing vs. 1,131 declining with 161 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.5%. Top gainers within the Consumer Non-Durables industry included China Xiniya Fashion ( XNY), up 4.9%, Exceed ( EDS), up 2.4%, Forward Industries ( FORD), up 3.9%, Core Molding Technologies ( CMT), up 3.0% and EveryWare Global ( EVRY), up 19.2%.

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

Core Molding Technologies ( CMT) is one of the companies that pushed the Consumer Non-Durables industry higher today. Core Molding Technologies was up $0.40 (3.0%) to $13.68 on average volume. Throughout the day, 17,166 shares of Core Molding Technologies exchanged hands as compared to its average daily volume of 12,300 shares. The stock ranged in a price between $13.25-$13.70 after having opened the day at $13.45 as compared to the previous trading day's close of $13.28.

Core Molding Technologies, Inc., together with its subsidiaries, manufactures sheet molding compounds (SMC) and molds of fiberglass reinforced plastics. Core Molding Technologies has a market cap of $106.7 million and is part of the consumer goods sector. Shares are down 3.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Core Molding Technologies a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Core Molding Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on CMT go as follows:

  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 33.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 57.14% and other important driving factors, this stock has surged by 50.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CMT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 58.6% when compared to the same quarter one year prior, rising from $1.59 million to $2.52 million.
  • CORE MOLDING TECHNOLOGIES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CORE MOLDING TECHNOLOGIES reported lower earnings of $0.92 versus $1.12 in the prior year.

You can view the full analysis from the report here: Core Molding Technologies Ratings Report

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At the close, Exceed ( EDS) was up $0.04 (2.4%) to $1.69 on light volume. Throughout the day, 3,100 shares of Exceed exchanged hands as compared to its average daily volume of 18,300 shares. The stock ranged in a price between $1.65-$1.69 after having opened the day at $1.65 as compared to the previous trading day's close of $1.65.

Exceed Company Ltd. is engaged in the design, development, and wholesale of footwear, apparel, and accessories under the brand name of Xidelong in the People's Republic of China. Exceed has a market cap of $54.7 million and is part of the consumer goods sector. Shares are unchanged year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Exceed a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Exceed as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on EDS go as follows:

  • The revenue growth came in higher than the industry average of 10.9%. Since the same quarter one year prior, revenues rose by 33.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EDS's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 12.21, which clearly demonstrates the ability to cover short-term cash needs.
  • 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 gross profit margin for EXCEED CO LTD is currently lower than what is desirable, coming in at 27.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.36% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$13.97 million or 293.04% 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: Exceed 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.

China Xiniya Fashion ( XNY) was another company that pushed the Consumer Non-Durables industry higher today. China Xiniya Fashion was up $0.03 (4.9%) to $0.72 on heavy volume. Throughout the day, 93,745 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 40,100 shares. The stock ranged in a price between $0.71-$0.74 after having opened the day at $0.71 as compared to the previous trading day's close of $0.69.

China Xiniya Fashion Limited designs, manufactures, and sells men's business casual and business formal apparel and accessories to retail customers in the People's Republic of China. China Xiniya Fashion has a market cap of $41.6 million and is part of the consumer goods sector. Shares are down 47.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate China Xiniya Fashion a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates China Xiniya Fashion as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, 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 XNY go as follows:

  • XNY 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 9.03, which clearly demonstrates the ability to cover short-term cash needs.
  • XNY, with its decline in revenue, underperformed when compared the industry average of 10.9%. Since the same quarter one year prior, revenues slightly dropped by 7.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 Textiles, Apparel & Luxury Goods industry. The net income has decreased by 20.0% when compared to the same quarter one year ago, dropping from $5.35 million to $4.28 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, CHINA XINIYA FASHION LTD-ADR'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: China Xiniya Fashion 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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