3 Stocks Raising The Consumer Non-Durables Industry Higher

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.

One 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 down 25.91 points (-0.1%) at 17,627 as of Friday, Nov. 14, 2014, 1:25 PM ET. The NYSE advances/declines ratio sits at 1,592 issues advancing vs. 1,405 declining with 178 unchanged.

The Consumer Non-Durables industry as a whole closed the day down 0.2% versus the S&P 500, which was unchanged. Top gainers within the Consumer Non-Durables industry included China Shengda Packaging Group ( CPGI), up 24.7%, CTI Industries ( CTIB), up 1.8%, DS Healthcare Group ( DSKX), up 7.0%, China Xiniya Fashion ( XNY), up 3.8% and Zuoan Fashion ( ZA), up 3.8%.

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

DS Healthcare Group ( DSKX) is one of the companies that pushed the Consumer Non-Durables industry higher today. DS Healthcare Group was up $0.05 (7.0%) to $0.76 on light volume. Throughout the day, 8,139 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 27,300 shares. The stock ranged in a price between $0.75-$0.81 after having opened the day at $0.79 as compared to the previous trading day's close of $0.71.

DS Healthcare Group has a market cap of $12.7 million and is part of the consumer goods sector. Shares are down 67.8% year-to-date as of the close of trading on Thursday.

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At the close, CTI Industries ( CTIB) was up $0.07 (1.8%) to $4.00 on heavy volume. Throughout the day, 4,600 shares of CTI Industries exchanged hands as compared to its average daily volume of 1,800 shares. The stock ranged in a price between $3.90-$4.02 after having opened the day at $3.95 as compared to the previous trading day's close of $3.93.

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 $13.3 million and is part of the consumer goods sector. Shares are down 31.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate CTI Industries a buy, no analysts rate it a sell, and none rate it a hold.

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 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.

Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • The share price of CTI INDUSTRIES CORP has not done very well: it is down 22.85% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others 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

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

China Shengda Packaging Group ( CPGI) was another company that pushed the Consumer Non-Durables industry higher today. China Shengda Packaging Group was up $0.19 (24.7%) to $0.96 on heavy volume. Throughout the day, 42,998 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 4,200 shares. The stock ranged in a price between $0.77-$0.96 after having opened the day at $0.77 as compared to the previous trading day's close of $0.77.

China Shengda Packaging Group Inc., a paper packaging company, designs, manufactures, and sells flexo-printed and color-printed corrugated paper cartons of various sizes and strengths primarily in the People's Republic of China. China Shengda Packaging Group has a market cap of $31.0 million and is part of the consumer goods sector. Shares are down 5.9% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate China Shengda Packaging Group a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates China Shengda Packaging Group 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CPGI go as follows:

  • CPGI's revenue growth has slightly outpaced the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CPGI's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.25, which illustrates the ability to avoid short-term cash problems.
  • CHINA SHENGDA PACKAGING GP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CHINA SHENGDA PACKAGING GP reported lower earnings of $0.06 versus $0.14 in the prior year.
  • CPGI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.63%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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'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 Containers & Packaging industry and the overall market, CHINA SHENGDA PACKAGING GP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: China Shengda Packaging Group 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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