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 closed the day up 0.1% versus the S&P 500, which was up 0.3%. Laggards within the Consumer Goods sector included Virco Manufacturing ( VIRC), down 2.7%, DS Healthcare Group ( DSKX), down 7.0%, SkyPeople Fruit Juice ( SPU), down 3.4%, Koss ( KOSS), down 4.3% and American Lorain ( ALN), down 2.8%.

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

SkyPeople Fruit Juice ( SPU) is one of the companies that pushed the Consumer Goods sector lower today. SkyPeople Fruit Juice was down $0.03 (3.4%) to $0.93 on average volume. Throughout the day, 28,409 shares of SkyPeople Fruit Juice exchanged hands as compared to its average daily volume of 32,300 shares. The stock ranged in price between $0.85-$0.97 after having opened the day at $0.95 as compared to the previous trading day's close of $0.96.

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 $25.6 million and is part of the consumer non-durables industry. Shares are down 45.3% year-to-date as of the close of trading on Friday.

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 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 0.5%. 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. Despite the strong results of the gross profit margin, SPU's net profit margin of 0.40% significantly 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.

At the close, DS Healthcare Group ( DSKX) was down $0.06 (7.0%) to $0.80 on heavy volume. Throughout the day, 60,469 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 26,400 shares. The stock ranged in price between $0.78-$0.88 after having opened the day at $0.78 as compared to the previous trading day's close of $0.86.

DS Healthcare Group has a market cap of $14.2 million and is part of the consumer non-durables industry. Shares are down 64.9% year-to-date as of the close of trading on Friday.

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

Virco Manufacturing ( VIRC) was another company that pushed the Consumer Goods sector lower today. Virco Manufacturing was down $0.07 (2.7%) to $2.51 on light volume. Throughout the day, 298 shares of Virco Manufacturing exchanged hands as compared to its average daily volume of 6,800 shares. The stock ranged in price between $2.51-$2.51 after having opened the day at $2.51 as compared to the previous trading day's close of $2.58.

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 $37.9 million and is part of the consumer non-durables industry. Shares are up 11.2% 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.

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.

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

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.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite 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

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

More from Markets

Oil Slips From Three-Year Peak After Trump Tweets Anger at OPEC

Oil Slips From Three-Year Peak After Trump Tweets Anger at OPEC

Swiss Franc Slides to Three-Year Low as U.S. Sanctions on Russian Oligarchs Bite

Swiss Franc Slides to Three-Year Low as U.S. Sanctions on Russian Oligarchs Bite

GE Beats Earnings Estimates and 4 Other Stories You Must Know Friday Morning

GE Beats Earnings Estimates and 4 Other Stories You Must Know Friday Morning

General Electric, Honeywell, Wells Fargo and Qualcomm - 5 Things You Must Know

General Electric, Honeywell, Wells Fargo and Qualcomm - 5 Things You Must Know

Global Stocks Hit by Asia Tech Weakness, Oil Price Rally; U.S. Futures Slip

Global Stocks Hit by Asia Tech Weakness, Oil Price Rally; U.S. Futures Slip