3 Stocks Moving The Consumer Durables Industry Upward

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 128 points (0.8%) at 16,805 as of Friday, Oct. 24, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,914 issues advancing vs. 1,162 declining with 133 unchanged.

The Consumer Durables industry as a whole closed the day down 0.3% versus the S&P 500, which was up 0.7%. Top gainers within the Consumer Durables industry included Liberty TripAdvisor Holdings ( LTRPB), up 3.3%, Global-Tech Advanced Innovations ( GAI), up 4.4%, Gaming Partners International ( GPIC), up 4.0%, Norcraft Companies ( NCFT), up 5.6% and Select Comfort ( SCSS), up 1.6%.

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

Select Comfort ( SCSS) is one of the companies that pushed the Consumer Durables industry higher today. Select Comfort was up $0.41 (1.6%) to $25.49 on heavy volume. Throughout the day, 1,548,168 shares of Select Comfort exchanged hands as compared to its average daily volume of 659,700 shares. The stock ranged in a price between $25.00-$25.97 after having opened the day at $25.00 as compared to the previous trading day's close of $25.08.

Select Comfort Corporation, together with its subsidiaries, provides sleep solutions and services in the United States. The company manufactures, markets, and retails beds and bedding products, such as mattresses, pillows, sheets, adjustable bases, and other bedding products. Select Comfort has a market cap of $1.2 billion and is part of the consumer goods sector. Shares are up 18.9% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Select Comfort a buy, no analysts rate it a sell, and 6 rate it a hold.

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TheStreet Ratings rates Select Comfort as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on SCSS 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 22.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 16.3% when compared to the same quarter one year prior, going from $20.26 million to $23.55 million.
  • Net operating cash flow has significantly increased by 59.91% to $86.26 million when compared to the same quarter last year. In addition, SELECT COMFORT CORP has also vastly surpassed the industry average cash flow growth rate of 9.40%.
  • SELECT COMFORT CORP has improved earnings per share by 22.2% 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, SELECT COMFORT CORP reported lower earnings of $1.08 versus $1.37 in the prior year. This year, the market expects an improvement in earnings ($1.11 versus $1.08).

You can view the full analysis from the report here: Select Comfort Ratings Report

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At the close, Norcraft Companies ( NCFT) was up $0.91 (5.6%) to $17.23 on average volume. Throughout the day, 41,077 shares of Norcraft Companies exchanged hands as compared to its average daily volume of 34,300 shares. The stock ranged in a price between $16.36-$17.42 after having opened the day at $16.36 as compared to the previous trading day's close of $16.32.

Norcraft Companies has a market cap of $280.8 million and is part of the consumer goods sector. Shares are down 16.8% year-to-date as of the close of trading on Thursday.

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

Gaming Partners International ( GPIC) was another company that pushed the Consumer Durables industry higher today. Gaming Partners International was up $0.32 (4.0%) to $8.35 on average volume. Throughout the day, 7,735 shares of Gaming Partners International exchanged hands as compared to its average daily volume of 5,300 shares. The stock ranged in a price between $8.21-$8.43 after having opened the day at $8.23 as compared to the previous trading day's close of $8.03.

Gaming Partners International Corporation, together with its subsidiaries, manufactures and supplies casino table game equipment to licensed casinos worldwide. Gaming Partners International has a market cap of $65.3 million and is part of the consumer goods sector. Shares are up 1.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Gaming Partners International a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Gaming Partners International 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, good cash flow from operations and increase in stock price during the past year. 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 GPIC go as follows:

  • GPIC's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GPIC has a quick ratio of 2.05, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 131.33% to $1.08 million when compared to the same quarter last year. In addition, GAMING PARTNERS INTL CORP has also vastly surpassed the industry average cash flow growth rate of -23.09%.
  • GPIC, with its decline in revenue, underperformed when compared the industry average of 7.8%. Since the same quarter one year prior, revenues fell by 27.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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, GAMING PARTNERS INTL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GAMING PARTNERS INTL CORP is currently lower than what is desirable, coming in at 32.58%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -11.29% is significantly below that of the industry average.

You can view the full analysis from the report here: Gaming Partners International 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.