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 up 0.3% versus the S&P 500, which was up 0.1%. Laggards within the Consumer Goods sector included China Xiniya Fashion ( XNY), down 14.9%, Natuzzi SPA ( NTZ), down 2.5%, Fuwei Films (Holdings ( FFHL), down 1.7%, SkyPeople Fruit Juice ( SPU), down 7.8% and Willamette Valley Vineyards ( WVVI), down 2.4%.

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

Fuwei Films (Holdings ( FFHL) is one of the companies that pushed the Consumer Goods sector lower today. Fuwei Films (Holdings was down $0.02 (1.7%) to $1.18 on light volume. Throughout the day, 2,180 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 29,500 shares. The stock ranged in price between $1.17-$1.22 after having opened the day at $1.20 as compared to the previous trading day's close of $1.20.

Fuwei Films (Holdings) Co., Ltd., through its subsidiary, Fuwei Films (Shandong) Co., Ltd., develops, manufactures, and distributes plastic films using the biaxially- oriented stretch technique in the People's Republic of China. Fuwei Films (Holdings has a market cap of $16.1 million and is part of the wholesale industry. Shares are up 7.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Fuwei Films (Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on FFHL go as follows:

  • FUWEI FILMS HOLDINGS CO's earnings per share declined by 21.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, FUWEI FILMS HOLDINGS CO reported poor results of -$0.74 versus -$0.66 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Chemicals industry. The net income has decreased by 23.5% when compared to the same quarter one year ago, dropping from -$3.00 million to -$3.71 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Chemicals industry and the overall market, FUWEI FILMS HOLDINGS CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FUWEI FILMS HOLDINGS CO is currently extremely low, coming in at 3.71%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -32.84% is significantly below that of the industry average.
  • Looking at the price performance of FFHL's shares over the past 12 months, there is not much good news to report: the stock is down 32.40%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

You can view the full analysis from the report here: Fuwei Films (Holdings 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, Natuzzi SPA ( NTZ) was down $0.06 (2.5%) to $2.32 on light volume. Throughout the day, 6,008 shares of Natuzzi SPA exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in price between $2.30-$2.41 after having opened the day at $2.41 as compared to the previous trading day's close of $2.38.

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. Natuzzi SPA has a market cap of $131.5 million and is part of the wholesale industry. Shares are down 8.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Natuzzi SPA as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on NTZ go as follows:

  • NATUZZI SPA has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, NATUZZI SPA reported poor results of -$1.71 versus -$0.63 in the prior year.
  • 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 75.6% when compared to the same quarter one year ago, falling from -$7.69 million to -$13.50 million.
  • 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 Household Durables industry and the overall market, NATUZZI SPA's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NATUZZI SPA is currently lower than what is desirable, coming in at 31.00%. Regardless of NTZ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, NTZ's net profit margin of -9.95% significantly underperformed when compared to the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.8%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Natuzzi SPA 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 Goods sector lower today. China Xiniya Fashion was down $0.11 (14.9%) to $0.63 on heavy volume. Throughout the day, 574,231 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 42,400 shares. The stock ranged in price between $0.63-$0.70 after having opened the day at $0.69 as compared to the previous trading day's close of $0.74.

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 $42.1 million and is part of the wholesale industry. Shares are down 43.5% year-to-date as of the close of trading on Wednesday.

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.

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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 11.5%. 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.

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