3 Stocks Pushing 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 305 points (1.8%) at 17,666 as of Tuesday, Feb. 3, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,499 issues advancing vs. 614 declining with 98 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 1.8% versus the S&P 500, which was up 1.4%. Top gainers within the Consumer Non-Durables industry included Fuwei Films (Holdings ( FFHL), up 7.6%, China Shengda Packaging Group ( CPGI), up 9.8%, Standard Register ( SR), up 4.8%, DS Healthcare Group ( DSKX), up 5.1% and Ever-Glory International Group ( EVK), up 1.9%.

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

Standard Register ( SR) is one of the companies that pushed the Consumer Non-Durables industry higher today. Standard Register was up $0.06 (4.8%) to $1.30 on heavy volume. Throughout the day, 105,684 shares of Standard Register exchanged hands as compared to its average daily volume of 20,800 shares. The stock ranged in a price between $1.25-$1.44 after having opened the day at $1.26 as compared to the previous trading day's close of $1.24.

Standard Register has a market cap of $12.9 million and is part of the consumer goods sector. Shares are down 62.0% year-to-date as of the close of trading on Monday.

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At the close, China Shengda Packaging Group ( CPGI) was up $0.09 (9.8%) to $1.03 on light volume. Throughout the day, 3,060 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 8,000 shares. The stock ranged in a price between $0.96-$1.03 after having opened the day at $0.97 as compared to the previous trading day's close of $0.94.

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 $39.6 million and is part of the consumer goods sector. Shares are up 9.9% year-to-date as of the close of trading on Monday. 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.

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TheStreet Ratings rates China Shengda Packaging Group as a hold. 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 and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CPGI go as follows:

  • The revenue growth came in higher than the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 18.4%. 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 1.24, 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.
  • The gross profit margin for CHINA SHENGDA PACKAGING GP is rather low; currently it is at 18.68%. Regardless of CPGI'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 2.74% trails 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. 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.

Fuwei Films (Holdings ( FFHL) was another company that pushed the Consumer Non-Durables industry higher today. Fuwei Films (Holdings was up $0.05 (7.6%) to $0.67 on light volume. Throughout the day, 200 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 12,700 shares. The stock ranged in a price between $0.67-$0.67 after having opened the day at $0.67 as compared to the previous trading day's close of $0.62.

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 $7.3 million and is part of the consumer goods sector. Shares are down 15.8% 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 weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on FFHL go as follows:

  • Net operating cash flow has significantly decreased to -$1.87 million or 247.32% 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 FUWEI FILMS HOLDINGS CO is currently extremely low, coming in at 12.97%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, FFHL's net profit margin of -25.64% significantly underperformed when compared to the industry average.
  • FFHL'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 55.91%, 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. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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. 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.
  • FUWEI FILMS HOLDINGS CO has improved earnings per share by 24.1% 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, FUWEI FILMS HOLDINGS CO reported poor results of -$0.74 versus -$0.66 in the prior year.

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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