3 Stocks Advancing The Food & Beverage Industry

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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 153.49 points (-0.9%) at 16,461 as of Wednesday, Oct. 22, 2014, 4:35 PM ET. The NYSE advances/declines ratio sits at 2,410 issues advancing vs. 704 declining with 100 unchanged.

The Food & Beverage industry as a whole closed the day up 0.4% versus the S&P 500, which was down 0.7%. Top gainers within the Food & Beverage industry included Tofutti Brands ( TOF), up 5.4%, SkyPeople Fruit Juice ( SPU), up 4.0%, Truett-Hurst ( THST), up 2.9%, Tianli Agritech ( OINK), up 3.2% and China New Borun ( BORN), up 4.8%.

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

China New Borun ( BORN) is one of the companies that pushed the Food & Beverage industry higher today. China New Borun was up $0.08 (4.8%) to $1.75 on average volume. Throughout the day, 93,304 shares of China New Borun exchanged hands as compared to its average daily volume of 115,000 shares. The stock ranged in a price between $1.67-$1.80 after having opened the day at $1.68 as compared to the previous trading day's close of $1.67.

China New Borun Corporation produces and distributes corn-based edible alcohol in the People's Republic of China. China New Borun has a market cap of $45.3 million and is part of the consumer goods sector. Shares are down 33.2% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate China New Borun a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates China New Borun 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 feeble growth in the company's earnings per share, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on BORN go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • CHINA NEW BORUN CORP -ADR's earnings per share declined by 18.8% 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, CHINA NEW BORUN CORP -ADR reported lower earnings of $0.51 versus $1.16 in the prior year.
  • The gross profit margin for CHINA NEW BORUN CORP -ADR is currently extremely low, coming in at 10.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.14% significantly trails the industry average.

You can view the full analysis from the report here: China New Borun 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, Truett-Hurst ( THST) was up $0.13 (2.9%) to $4.56 on light volume. Throughout the day, 3,444 shares of Truett-Hurst exchanged hands as compared to its average daily volume of 11,800 shares. The stock ranged in a price between $4.51-$4.64 after having opened the day at $4.60 as compared to the previous trading day's close of $4.43.

Truett-Hurst, Inc. produces, markets, and sells wines primarily in the United States. The company operates through Wholesale, Direct to Consumer, and Internet segments. Truett-Hurst has a market cap of $17.6 million and is part of the consumer goods sector. Shares are up 6.2% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Truett-Hurst a buy, no analysts rate it a sell, and 1 rates it a hold.

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

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

Highlights from TheStreet Ratings analysis on THST go as follows:

  • 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 Beverages industry. The net income has significantly decreased by 173.1% when compared to the same quarter one year ago, falling from $0.48 million to -$0.35 million.
  • The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, THST maintains a poor quick ratio of 0.72, which illustrates the inability to avoid short-term cash problems.
  • The gross profit margin for TRUETT-HURST INC is currently lower than what is desirable, coming in at 34.69%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.36% is significantly below that of the industry average.
  • Net operating cash flow has decreased to -$1.18 million or 23.42% 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.
  • The share price of TRUETT-HURST INC has not done very well: it is down 5.63% 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. 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.

You can view the full analysis from the report here: Truett-Hurst 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.

SkyPeople Fruit Juice ( SPU) was another company that pushed the Food & Beverage industry higher today. SkyPeople Fruit Juice was up $0.04 (4.0%) to $1.05 on light volume. Throughout the day, 9,707 shares of SkyPeople Fruit Juice exchanged hands as compared to its average daily volume of 31,600 shares. The stock ranged in a price between $1.00-$1.05 after having opened the day at $1.05 as compared to the previous trading day's close of $1.01.

SkyPeople Fruit Juice, Inc., through its subsidiaries, produces and sells fruit juice concentrates, fruit beverages, and other fruit-related products in the People's Republic of China and internationally. SkyPeople Fruit Juice has a market cap of $27.5 million and is part of the consumer goods sector. Shares are down 42.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate SkyPeople Fruit Juice a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates SkyPeople Fruit Juice 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 feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on SPU go as follows:

  • The revenue growth came in higher than the industry average of 0.9%. Since the same quarter one year prior, revenues rose by 15.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SPU has a quick ratio of 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 43.28% is the gross profit margin for SKYPEOPLE FRUIT JUICE INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 0.40% trails the industry average.
  • 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 Food Products industry and the overall market, SKYPEOPLE FRUIT JUICE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has significantly decreased to $7.49 million or 54.97% 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: SkyPeople Fruit Juice 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.

More from Markets

Amazon Reportedly Among Bidders for Disney's Regional Sports Networks

Amazon Reportedly Among Bidders for Disney's Regional Sports Networks

Markets Erase 2018 Gains Following Dismal Day of Trading, Dow Drops 550 Points

Markets Erase 2018 Gains Following Dismal Day of Trading, Dow Drops 550 Points

Chart of the Day: Is Kohl's a Playable Stock on a Pullback?

Chart of the Day: Is Kohl's a Playable Stock on a Pullback?

Tuesday Turnaround: This Market Is Un-Bear-Able

Tuesday Turnaround: This Market Is Un-Bear-Able

Market Movers: Federal Reserve Review

Market Movers: Federal Reserve Review