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 was unchanged today versus the S&P 500, which was unchanged. Laggards within the Consumer Goods sector included CTI Industries ( CTIB), down 2.5%, Virco Manufacturing ( VIRC), down 4.4%, Koss ( KOSS), down 1.5%, Standard Register ( SR), down 2.1% and American Lorain ( ALN), down 3.7%.

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

Standard Register ( SR) is one of the companies that pushed the Consumer Goods sector lower today. Standard Register was down $0.11 (2.1%) to $5.03 on light volume. Throughout the day, 4,119 shares of Standard Register exchanged hands as compared to its average daily volume of 7,700 shares. The stock ranged in price between $5.03-$5.20 after having opened the day at $5.04 as compared to the previous trading day's close of $5.14.

Standard Register has a market cap of $42.0 million and is part of the food & beverage industry. Shares are down 26.0% year-to-date as of the close of trading on Friday.

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At the close, Virco Manufacturing ( VIRC) was down $0.12 (4.4%) to $2.59 on light volume. Throughout the day, 122 shares of Virco Manufacturing exchanged hands as compared to its average daily volume of 8,700 shares. The stock ranged in price between $2.59-$2.59 after having opened the day at $2.59 as compared to the previous trading day's close of $2.71.

Virco Mfg. Corporation is engaged in the design, production, and distribution of furniture for the commercial and education markets in the United States. Virco Manufacturing has a market cap of $35.3 million and is part of the food & beverage industry. Shares are up 18.1% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Virco Manufacturing a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Virco Manufacturing as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.

Highlights from TheStreet Ratings analysis on VIRC go as follows:

  • 41.25% is the gross profit margin for VIRCO MFG. CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.78% trails the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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 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 Commercial Services & Supplies industry. The net income has decreased by 16.2% when compared to the same quarter one year ago, dropping from $6.21 million to $5.20 million.
  • Net operating cash flow has significantly decreased to -$11.93 million or 60.95% 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.

You can view the full analysis from the report here: Virco Manufacturing Ratings Report

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CTI Industries ( CTIB) was another company that pushed the Consumer Goods sector lower today. CTI Industries was down $0.10 (2.5%) to $3.95 on average volume. Throughout the day, 2,230 shares of CTI Industries exchanged hands as compared to its average daily volume of 2,600 shares. The stock ranged in price between $3.95-$4.05 after having opened the day at $4.05 as compared to the previous trading day's close of $4.05.

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 $12.4 million and is part of the food & beverage industry. Shares are down 30.6% year-to-date as of the close of trading on Friday.

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.

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Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.89%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies 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

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