3 Stocks Improving Performance Of The Consumer Non-Durables Industry

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.

Two out of the three major indices traded up today 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 3.30 points (0.0%) at 17,812 as of Wednesday, Nov. 26, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,757 issues advancing vs. 1,268 declining with 146 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.1%. Top gainers within the Consumer Non-Durables industry included DS Healthcare Group ( DSKX), up 15.8%, Forward Industries ( FORD), up 6.5%, Zuoan Fashion ( ZA), up 6.9%, United-Guardian ( UG), up 3.2% and Swisher Hygiene ( SWSH), up 2.2%.

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

United-Guardian ( UG) is one of the companies that pushed the Consumer Non-Durables industry higher today. United-Guardian was up $0.65 (3.2%) to $20.70 on average volume. Throughout the day, 5,171 shares of United-Guardian exchanged hands as compared to its average daily volume of 5,400 shares. The stock ranged in a price between $20.10-$20.70 after having opened the day at $20.16 as compared to the previous trading day's close of $20.05.

United-Guardian, Inc. researches, develops, manufactures, and markets cosmetic ingredients, personal care products, pharmaceuticals, medical and health care products, and specialty industrial products in the United States, Canada, China, France, and internationally. United-Guardian has a market cap of $94.4 million and is part of the consumer goods sector. Shares are down 28.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate United-Guardian a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates United-Guardian as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on UG go as follows:

  • 48.29% is the gross profit margin for UNITED-GUARDIAN INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, UG's net profit margin of 16.33% compares favorably to the industry average.
  • UNITED-GUARDIAN INC 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. 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, UNITED-GUARDIAN INC increased its bottom line by earning $1.28 versus $1.05 in the prior year.
  • The revenue fell significantly faster than the industry average of 5.6%. Since the same quarter one year prior, revenues fell by 26.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of UNITED-GUARDIAN INC has not done very well: it is down 19.63% 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, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • 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 Personal Products industry. The net income has significantly decreased by 67.8% when compared to the same quarter one year ago, falling from $1.28 million to $0.41 million.

You can view the full analysis from the report here: United-Guardian Ratings Report

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At the close, Zuoan Fashion ( ZA) was up $0.05 (6.9%) to $0.79 on light volume. Throughout the day, 41,120 shares of Zuoan Fashion exchanged hands as compared to its average daily volume of 57,900 shares. The stock ranged in a price between $0.74-$0.79 after having opened the day at $0.77 as compared to the previous trading day's close of $0.74.

Zuoan Fashion Limited designs, manufactures, distributes, and retails fashion casual menswear. Zuoan Fashion has a market cap of $21.7 million and is part of the consumer goods sector. Shares are down 56.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Zuoan 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 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

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

DS Healthcare Group ( DSKX) was another company that pushed the Consumer Non-Durables industry higher today. DS Healthcare Group was up $0.13 (15.8%) to $0.95 on heavy volume. Throughout the day, 43,819 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 29,100 shares. The stock ranged in a price between $0.87-$0.96 after having opened the day at $0.90 as compared to the previous trading day's close of $0.82.

DS Healthcare Group has a market cap of $12.9 million and is part of the consumer goods sector. Shares are down 67.3% year-to-date as of the close of trading on Tuesday.

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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