3 Consumer Goods Stocks Nudging The Sector Higher

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.

Two out of the three major indices traded up today One out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 19.71 points (-0.1%) at 17,049 as of Thursday, Sept. 11, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,733 issues advancing vs. 1,330 declining with 151 unchanged.

The Consumer Goods sector as a whole closed the day up 0.3% versus the S&P 500, which was up 0.1%. Top gainers within the Consumer Goods sector included Crystal Rock Holdings ( CRVP), up 3.8%, Entertainment Gaming Asia ( EGT), up 4.7%, Bridgford Foods ( BRID), up 2.0%, CTI Industries ( CTIB), up 2.7% and DS Healthcare Group ( DSKX), up 9.5%.

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

DS Healthcare Group ( DSKX) is one of the companies that pushed the Consumer Goods sector higher today. DS Healthcare Group was up $0.10 (9.5%) to $1.15 on average volume. Throughout the day, 22,832 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 18,200 shares. The stock ranged in a price between $1.05-$1.15 after having opened the day at $1.11 as compared to the previous trading day's close of $1.05.

DS Healthcare Group has a market cap of $17.2 million and is part of the food & beverage industry. Shares are down 57.1% year-to-date as of the close of trading on Wednesday.

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At the close, CTI Industries ( CTIB) was up $0.11 (2.7%) to $4.21 on light volume. Throughout the day, 640 shares of CTI Industries exchanged hands as compared to its average daily volume of 3,300 shares. The stock ranged in a price between $3.81-$4.21 after having opened the day at $4.20 as compared to the previous trading day's close of $4.10.

CTI Industries Corporation develops, manufactures, and supplies flexible film products for novelty, packaging and container, and custom product applications worldwide. CTI Industries has a market cap of $14.0 million and is part of the food & beverage industry. Shares are down 27.4% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate CTI Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates CTI Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, generally high debt management risk, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • The share price of CTI INDUSTRIES CORP has not done very well: it is down 23.31% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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 Household Durables industry. The net income has significantly decreased by 116.1% when compared to the same quarter one year ago, falling from -$0.06 million to -$0.12 million.
  • The debt-to-equity ratio of 1.47 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, CTIB has a quick ratio of 0.55, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly decreased to -$2.01 million or 231.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for CTI INDUSTRIES CORP is currently lower than what is desirable, coming in at 27.02%. Regardless of CTIB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.91% trails the industry average.

You can view the full analysis from the report here: CTI Industries 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.

Entertainment Gaming Asia ( EGT) was another company that pushed the Consumer Goods sector higher today. Entertainment Gaming Asia was up $0.02 (4.7%) to $0.44 on heavy volume. Throughout the day, 68,560 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 19,900 shares. The stock ranged in a price between $0.41-$0.47 after having opened the day at $0.41 as compared to the previous trading day's close of $0.42.

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 $12.0 million and is part of the food & beverage industry. Shares are down 66.5% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Entertainment Gaming Asia a buy, no analysts rate it a sell, and none rate it a hold.

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.

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.

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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