3 Consumer Goods Stocks Moving The Sector Upward

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 6 points (0.0%) at 17,679 as of Monday, Jan. 26, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,130 issues advancing vs. 953 declining with 135 unchanged.

The Consumer Goods sector as a whole closed the day up 0.6% versus the S&P 500, which was up 0.3%. Top gainers within the Consumer Goods sector included Bridgford Foods ( BRID), up 9.5%, Entertainment Gaming Asia ( EGT), up 2.4%, Exceed ( EDS), up 2.0%, Leading Brands ( LBIX), up 11.8% and Forward Industries ( FORD), up 2.1%.

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

Leading Brands ( LBIX) is one of the companies that pushed the Consumer Goods sector higher today. Leading Brands was up $0.40 (11.8%) to $3.80 on average volume. Throughout the day, 6,752 shares of Leading Brands exchanged hands as compared to its average daily volume of 7,100 shares. The stock ranged in a price between $3.42-$3.80 after having opened the day at $3.42 as compared to the previous trading day's close of $3.40.

Leading Brands, Inc., together with its subsidiaries, is engaged in the development, production, marketing, and distribution of beverages in Canada, the western United States, and Asia. Leading Brands has a market cap of $10.6 million and is part of the consumer non-durables industry. Shares are up 3.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Leading Brands 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 Leading Brands as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on LBIX go as follows:

  • The share price of LEADING BRANDS INC has not done very well: it is down 9.93% 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 Beverages industry. The net income has significantly decreased by 182.1% when compared to the same quarter one year ago, falling from $0.10 million to -$0.08 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Beverages industry and the overall market, LEADING BRANDS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.01 million or 102.31% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 39.17% is the gross profit margin for LEADING BRANDS INC which we consider to be strong. Regardless of LBIX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LBIX's net profit margin of -2.73% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Leading Brands 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, Exceed ( EDS) was up $0.03 (2.0%) to $1.53 on light volume. Throughout the day, 2,569 shares of Exceed exchanged hands as compared to its average daily volume of 12,900 shares. The stock ranged in a price between $1.50-$1.53 after having opened the day at $1.50 as compared to the previous trading day's close of $1.50.

Exceed has a market cap of $49.0 million and is part of the consumer non-durables industry. Shares are down 3.9% year-to-date as of the close of trading on Friday.

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

Entertainment Gaming Asia ( EGT) was another company that pushed the Consumer Goods sector higher today. Entertainment Gaming Asia was up $0.01 (2.4%) to $0.42 on light volume. Throughout the day, 14,556 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 26,100 shares. The stock ranged in a price between $0.38-$0.43 after having opened the day at $0.41 as compared to the previous trading day's close of $0.41.

Entertainment Gaming Asia Inc., a gaming company, owns and leases electronic gaming machines (EGMs) in resorts, hotels, and other venues in Cambodia and the Philippines. It operates in two segments, Gaming Operations and Gaming Products. Entertainment Gaming Asia has a market cap of $13.2 million and is part of the consumer non-durables industry. Shares are down 22.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Entertainment Gaming Asia a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Entertainment Gaming Asia as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on EGT go as follows:

  • ENTERTAINMENT GAMING ASIA's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.14 versus $0.07 in the prior year.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, ENTERTAINMENT GAMING ASIA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $0.07 million or 94.25% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • This stock's share value has moved by only 63.34% over the past year. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • EGT, with its decline in revenue, underperformed when compared the industry average of 8.7%. Since the same quarter one year prior, revenues fell by 19.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Entertainment Gaming Asia 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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