3 Stocks Driving 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 82 points (0.5%) at 17,801 as of Friday, Nov. 21, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 2,057 issues advancing vs. 968 declining with 155 unchanged.

The Consumer Non-Durables industry as a whole was unchanged today versus the S&P 500, which was up 0.4%. Top gainers within the Consumer Non-Durables industry included China Shengda Packaging Group ( CPGI), up 4.7%, China Xiniya Fashion ( XNY), up 2.0%, Ever-Glory International Group ( EVK), up 2.4%, Northern Technologies International ( NTIC), up 2.2% and Core Molding Technologies ( CMT), up 4.1%.

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

Northern Technologies International ( NTIC) is one of the companies that pushed the Consumer Non-Durables industry higher today. Northern Technologies International was up $0.45 (2.2%) to $21.00 on light volume. Throughout the day, 1,869 shares of Northern Technologies International exchanged hands as compared to its average daily volume of 4,900 shares. The stock ranged in a price between $20.99-$21.00 after having opened the day at $21.00 as compared to the previous trading day's close of $20.55.

Northern Technologies International Corporation develops, markets, and sells rust and corrosion inhibiting products and services under the ZERUST brand name to the automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets. Northern Technologies International has a market cap of $92.6 million and is part of the consumer goods sector. Shares are up 10.5% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Northern Technologies International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Northern Technologies International as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on NTIC go as follows:

  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 21.2%. 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.
  • NTIC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.39, which clearly demonstrates the ability to cover short-term cash needs.
  • 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. 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.
  • NORTHERN TECH INTL's earnings per share declined by 25.0% 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, NORTHERN TECH INTL increased its bottom line by earning $0.89 versus $0.76 in the prior year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Chemicals industry and the overall market, NORTHERN TECH INTL's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: Northern Technologies International 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, China Xiniya Fashion ( XNY) was up $0.01 (2.0%) to $0.53 on heavy volume. Throughout the day, 71,610 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 45,900 shares. The stock ranged in a price between $0.46-$0.53 after having opened the day at $0.52 as compared to the previous trading day's close of $0.52.

China Xiniya Fashion Limited designs, manufactures, and sells men's business casual and business formal apparel and accessories to retail customers in the People's Republic of China. China Xiniya Fashion has a market cap of $28.5 million and is part of the consumer goods sector. Shares are down 60.3% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate China Xiniya Fashion 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 China Xiniya Fashion as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, 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 disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on XNY go as follows:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 41.5% when compared to the same quarter one year prior, rising from $1.53 million to $2.16 million.
  • XNY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 8.98, which clearly demonstrates the ability to cover short-term cash needs.
  • XNY, with its decline in revenue, underperformed when compared the industry average of 16.6%. Since the same quarter one year prior, revenues fell by 11.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for CHINA XINIYA FASHION LTD-ADR is currently lower than what is desirable, coming in at 27.77%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.62% trails that of the industry average.
  • 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. In comparison to the other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, CHINA XINIYA FASHION LTD-ADR's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: China Xiniya Fashion 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 $0.04 (4.7%) to $0.96 on heavy volume. Throughout the day, 45,681 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 5,600 shares. The stock ranged in a price between $0.96-$1.05 after having opened the day at $0.99 as compared to the previous trading day's close of $0.92.

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 $37.2 million and is part of the consumer goods sector. Shares are up 12.9% 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 34.19%, 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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