3 Consumer Non-Durables Stocks Pushing The 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 Two out of the three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 31 points (0.2%) at 17,848 as of Tuesday, Nov. 25, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,614 issues advancing vs. 1,392 declining with 174 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Top gainers within the Consumer Non-Durables industry included Fuwei Films (Holdings ( FFHL), up 1.7%, DS Healthcare Group ( DSKX), up 3.8%, Forward Industries ( FORD), up 2.9%, Deswell Industries ( DSWL), up 3.2% and Crown Crafts ( CRWS), up 1.7%.

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

Deswell Industries ( DSWL) is one of the companies that pushed the Consumer Non-Durables industry higher today. Deswell Industries was up $0.07 (3.2%) to $2.23 on heavy volume. Throughout the day, 32,556 shares of Deswell Industries exchanged hands as compared to its average daily volume of 15,900 shares. The stock ranged in a price between $2.20-$2.24 after having opened the day at $2.20 as compared to the previous trading day's close of $2.16.

Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components, electronic products, assembling, and metallic parts for original equipment manufacturers and contract manufacturers. Deswell Industries has a market cap of $34.4 million and is part of the consumer goods sector. Shares are down 4.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Deswell 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 Deswell Industries 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on DSWL go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 100.8% when compared to the same quarter one year prior, rising from -$1.72 million to $0.01 million.
  • DSWL 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 4.23, which clearly demonstrates the ability to cover short-term cash needs.
  • DSWL, with its decline in revenue, underperformed when compared the industry average of 2.2%. Since the same quarter one year prior, revenues fell by 19.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • DSWL has underperformed the S&P 500 Index, declining 9.43% 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.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, DESWELL INDUSTRIES INC'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: Deswell 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.

At the close, DS Healthcare Group ( DSKX) was up $0.03 (3.8%) to $0.83 on heavy volume. Throughout the day, 141,536 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 27,000 shares. The stock ranged in a price between $0.80-$1.05 after having opened the day at $0.80 as compared to the previous trading day's close of $0.80.

DS Healthcare Group has a market cap of $10.8 million and is part of the consumer goods sector. Shares are down 72.7% year-to-date as of the close of trading on Monday.

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 $0.02 (1.7%) to $0.97 on heavy volume. Throughout the day, 19,790 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 11,400 shares. The stock ranged in a price between $0.93-$0.97 after having opened the day at $0.94 as compared to the previous trading day's close of $0.95.

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 $12.6 million and is part of the consumer goods sector. Shares are down 15.2% year-to-date as of the close of trading on Monday. 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 21.96% 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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