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 0.2% versus the S&P 500, which was down 0.3%. Laggards within the Consumer Goods sector included BRASILAGRO - CIA Bras de Prop Agricolas ( LND), down 1.7%, Entertainment Gaming Asia ( EGT), down 5.7%, Global-Tech Advanced Innovations ( GAI), down 2.0%, DS Healthcare Group ( DSKX), down 7.8% and Koss ( KOSS), down 5.0%.

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

Colgate-Palmolive ( CL) is one of the companies that pushed the Consumer Goods sector lower today. Colgate-Palmolive was down $1.22 (1.9%) to $63.64 on average volume. Throughout the day, 3,733,096 shares of Colgate-Palmolive exchanged hands as compared to its average daily volume of 2,816,200 shares. The stock ranged in price between $63.63-$64.53 after having opened the day at $64.45 as compared to the previous trading day's close of $64.86.

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. The company operates in two segments: Oral, Personal and Home Care; and Pet Nutrition. Colgate-Palmolive has a market cap of $58.7 billion and is part of the consumer non-durables industry. Shares are down 0.5% year-to-date as of the close of trading on Friday. Currently there are 6 analysts who rate Colgate-Palmolive a buy, 1 analyst rates it a sell, and 12 rate it a hold.

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TheStreet Ratings rates Colgate-Palmolive as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from TheStreet Ratings analysis on CL go as follows:

  • CL's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for COLGATE-PALMOLIVE CO is rather high; currently it is at 61.24%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.29% is above that of the industry average.
  • Net operating cash flow has slightly increased to $569.00 million or 3.83% when compared to the same quarter last year. In addition, COLGATE-PALMOLIVE CO has also modestly surpassed the industry average cash flow growth rate of -0.53%.
  • COLGATE-PALMOLIVE CO has improved earnings per share by 11.7% 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, COLGATE-PALMOLIVE CO reported lower earnings of $2.39 versus $2.58 in the prior year. This year, the market expects an improvement in earnings ($2.96 versus $2.39).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Household Products industry average. The net income increased by 10.9% when compared to the same quarter one year prior, going from $561.00 million to $622.00 million.

You can view the full analysis from the report here: Colgate-Palmolive 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.

At the close, DS Healthcare Group ( DSKX) was down $0.10 (7.8%) to $1.12 on heavy volume. Throughout the day, 27,956 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 16,900 shares. The stock ranged in price between $1.12-$1.20 after having opened the day at $1.16 as compared to the previous trading day's close of $1.22.

DS Healthcare Group has a market cap of $19.3 million and is part of the consumer non-durables industry. Shares are down 50.4% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Entertainment Gaming Asia ( EGT) was another company that pushed the Consumer Goods sector lower today. Entertainment Gaming Asia was down $0.03 (5.7%) to $0.47 on heavy volume. Throughout the day, 31,324 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 16,700 shares. The stock ranged in price between $0.42-$0.51 after having opened the day at $0.48 as compared to the previous trading day's close of $0.50.

Entertainment Gaming Asia Inc., a gaming company, owns and leases electronic gaming machines (EGMs) in resorts, hotels, and other venues in Cambodia and the Philippines. It operates in two segments, Gaming Operations and Gaming Products. Entertainment Gaming Asia has a market cap of $14.3 million and is part of the consumer non-durables industry. Shares are down 59.7% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Entertainment Gaming Asia as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on EGT go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, ENTERTAINMENT GAMING ASIA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $1.82 million or 17.06% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • This stock's share value has moved by only 64.29% over the past year. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ENTERTAINMENT GAMING ASIA has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.15 versus $0.07 in the prior year.
  • The gross profit margin for ENTERTAINMENT GAMING ASIA is rather high; currently it is at 67.48%. Regardless of EGT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EGT's net profit margin of -0.44% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Entertainment Gaming Asia 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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