3 Consumer Non-Durables Stocks Moving The 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.

Two out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 80 points (0.5%) at 17,464 as of Wednesday, Nov. 5, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,610 issues advancing vs. 1,406 declining with 158 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.5%. Top gainers within the Consumer Non-Durables industry included Fuwei Films (Holdings ( FFHL), up 15.0%, DS Healthcare Group ( DSKX), up 4.8%, Orient Paper ( ONP), up 1.7%, Northern Technologies International ( NTIC), up 1.5% and Crown Crafts ( CRWS), up 3.0%.

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

Orient Paper ( ONP) is one of the companies that pushed the Consumer Non-Durables industry higher today. Orient Paper was up $0.02 (1.7%) to $1.21 on light volume. Throughout the day, 62,050 shares of Orient Paper exchanged hands as compared to its average daily volume of 83,300 shares. The stock ranged in a price between $1.17-$1.28 after having opened the day at $1.19 as compared to the previous trading day's close of $1.19.

Orient Paper, Inc. produces and distributes packaging and printing paper products in the People's Republic of China. It operates through two segments, Orient Paper HB and Orient Paper Shengde. Orient Paper has a market cap of $23.4 million and is part of the consumer goods sector. Shares are down 55.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Orient Paper a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Orient Paper as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, 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, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on ONP go as follows:

  • The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 14.5%. 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.
  • ONP's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.36 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • ORIENT PAPER INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ORIENT PAPER INC reported lower earnings of $0.71 versus $0.80 in the prior year.
  • The gross profit margin for ORIENT PAPER INC is rather low; currently it is at 21.28%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 9.44% is above that of the industry average.

You can view the full analysis from the report here: Orient Paper 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, DS Healthcare Group ( DSKX) was up $0.04 (4.8%) to $0.94 on light volume. Throughout the day, 2,113 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 26,700 shares. The stock ranged in a price between $0.94-$0.97 after having opened the day at $0.95 as compared to the previous trading day's close of $0.90.

DS Healthcare Group has a market cap of $15.8 million and is part of the consumer goods sector. Shares are down 60.0% year-to-date as of the close of trading on Tuesday.

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

Fuwei Films (Holdings ( FFHL) was another company that pushed the Consumer Non-Durables industry higher today. Fuwei Films (Holdings was up $0.14 (15.0%) to $1.05 on light volume. Throughout the day, 1,500 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 12,800 shares. The stock ranged in a price between $0.89-$1.05 after having opened the day at $0.91 as compared to the previous trading day's close of $0.91.

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 $11.9 million and is part of the consumer goods sector. Shares are down 18.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Fuwei Films (Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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 when compared to that of the S&P 500 and 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.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, FFHL has underperformed the S&P 500 Index, declining 18.49% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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.

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.

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