3 Stocks Pushing The Consumer Goods Sector Lower

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The Consumer Goods sector as a whole closed the day up 0.2% versus the S&P 500, which was up 0.7%. Laggards within the Consumer Goods sector included Crystal Rock Holdings ( CRVP), down 1.9%, Exceed ( EDS), down 4.0%, Natuzzi SPA ( NTZ), down 4.8%, Fuwei Films (Holdings ( FFHL), down 2.4% and American Lorain ( ALN), down 1.6%.

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 $0.03 (2.4%) to $1.13 on light volume. Throughout the day, 2,050 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 28,500 shares. The stock ranged in price between $1.13-$1.15 after having opened the day at $1.14 as compared to the previous trading day's close of $1.15.

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 $15.2 million and is part of the tobacco industry. Shares are up 3.6% year-to-date as of the close of trading on Monday.

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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

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At the close, Natuzzi SPA ( NTZ) was down $0.11 (4.8%) to $2.18 on average volume. Throughout the day, 11,463 shares of Natuzzi SPA exchanged hands as compared to its average daily volume of 13,600 shares. The stock ranged in price between $2.11-$2.29 after having opened the day at $2.24 as compared to the previous trading day's close of $2.29.

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. Natuzzi SPA has a market cap of $125.1 million and is part of the tobacco industry. Shares are down 11.6% year-to-date as of the close of trading on Monday.

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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

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Exceed ( EDS) was another company that pushed the Consumer Goods sector lower today. Exceed was down $0.07 (4.0%) to $1.60 on average volume. Throughout the day, 15,125 shares of Exceed exchanged hands as compared to its average daily volume of 18,000 shares. The stock ranged in price between $1.60-$1.63 after having opened the day at $1.63 as compared to the previous trading day's close of $1.67.

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 $56.3 million and is part of the tobacco industry. Shares are up 1.0% year-to-date as of the close of trading on Monday.

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.

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Highlights from TheStreet Ratings analysis on EDS go as follows:

  • The revenue growth came in higher than the industry average of 11.5%. 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.

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