3 Stocks Pushing The Consumer Non-Durables Industry Lower

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The Consumer Non-Durables industry as a whole closed the day up 0.2% versus the S&P 500, which was unchanged. Laggards within the Consumer Non-Durables industry included Fuwei Films (Holdings ( FFHL), down 1.6%, Zuoan Fashion ( ZA), down 2.6%, Tandy Leather Factory ( TLF), down 1.6%, Joe's Jeans ( JOEZ), down 2.1% and Swisher Hygiene ( SWSH), down 6.3%.

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

Tandy Leather Factory ( TLF) is one of the companies that pushed the Consumer Non-Durables industry lower today. Tandy Leather Factory was down $0.15 (1.6%) to $9.21 on light volume. Throughout the day, 2,087 shares of Tandy Leather Factory exchanged hands as compared to its average daily volume of 7,700 shares. The stock ranged in price between $9.21-$9.37 after having opened the day at $9.37 as compared to the previous trading day's close of $9.36.

Tandy Leather Factory, Inc. is engaged in the retail and wholesale distribution of leather and related products. It operates through three segments: Wholesale Leathercraft, Retail Leathercraft, and International Leathercraft. Tandy Leather Factory has a market cap of $97.2 million and is part of the consumer goods sector. Shares are down 2.7% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Tandy Leather Factory as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on TLF go as follows:

  • TLF's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • TANDY LEATHER FACTORY INC has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, TANDY LEATHER FACTORY INC increased its bottom line by earning $0.71 versus $0.55 in the prior 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 8.3% when compared to the same quarter one year prior, going from $1.63 million to $1.77 million.

You can view the full analysis from the report here: Tandy Leather Factory Ratings Report

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At the close, Zuoan Fashion ( ZA) was down $0.02 (2.6%) to $0.75 on light volume. Throughout the day, 8,196 shares of Zuoan Fashion exchanged hands as compared to its average daily volume of 67,600 shares. The stock ranged in price between $0.74-$0.80 after having opened the day at $0.79 as compared to the previous trading day's close of $0.77.

Zuoan Fashion Limited designs, manufactures, distributes, and retails fashion casual menswear. Zuoan Fashion has a market cap of $20.3 million and is part of the consumer goods sector. Shares are down 54.7% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Zuoan Fashion as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on ZA go as follows:

  • ZUOAN FASHION LTD -ADR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, ZUOAN FASHION LTD -ADR reported lower earnings of $1.03 versus $1.72 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 103.2% when compared to the same quarter one year ago, falling from $11.16 million to -$0.36 million.
  • 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 Textiles, Apparel & Luxury Goods industry and the overall market, ZUOAN FASHION LTD -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ZUOAN FASHION LTD -ADR is currently lower than what is desirable, coming in at 31.29%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -0.91% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$8.10 million or 168.50% 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: Zuoan Fashion Ratings Report

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Fuwei Films (Holdings ( FFHL) was another company that pushed the Consumer Non-Durables industry lower today. Fuwei Films (Holdings was down $0.02 (1.6%) to $0.92 on average volume. Throughout the day, 13,360 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 13,600 shares. The stock ranged in price between $0.89-$0.96 after having opened the day at $0.93 as compared to the previous trading day's close of $0.93.

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 $12.3 million and is part of the consumer goods sector. Shares are down 16.1% year-to-date as of the close of trading on Monday.

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.

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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 19.30% 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.

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