3 Consumer Goods Stocks Pushing Sector Growth

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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 60.59 points (-0.3%) at 17,824 as of Friday, Feb. 6, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,145 issues advancing vs. 1,963 declining with 115 unchanged.

The Consumer Goods sector as a whole was unchanged today versus the S&P 500, which was down 0.3%. Top gainers within the Consumer Goods sector included Global-Tech Advanced Innovations ( GAI), up 1.8%, CTI Industries ( CTIB), up 5.6%, Golden ( GLDC), up 2.4%, Kewaunee Scientific ( KEQU), up 2.7% and Sypris Solutions ( SYPR), up 1.9%.

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

Sypris Solutions ( SYPR) is one of the companies that pushed the Consumer Goods sector higher today. Sypris Solutions was up $0.04 (1.9%) to $2.42 on light volume. Throughout the day, 5,651 shares of Sypris Solutions exchanged hands as compared to its average daily volume of 22,600 shares. The stock ranged in a price between $2.37-$2.45 after having opened the day at $2.40 as compared to the previous trading day's close of $2.37.

Sypris Solutions, Inc. provides outsourced services and specialty products primarily in the United States, Mexico, Denmark, and the United Kingdom. Sypris Solutions has a market cap of $48.8 million and is part of the consumer durables industry. Shares are down 10.9% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Sypris Solutions 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 Sypris Solutions as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on SYPR go as follows:

  • The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 18.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Auto Components industry. The net income increased by 41.9% when compared to the same quarter one year prior, rising from -$2.00 million to -$1.16 million.
  • SYPRIS SOLUTIONS INC has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SYPRIS SOLUTIONS INC swung to a loss, reporting -$0.52 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus -$0.52).
  • The gross profit margin for SYPRIS SOLUTIONS INC is currently extremely low, coming in at 11.97%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.28% trails that of the industry average.
  • SYPR has underperformed the S&P 500 Index, declining 19.67% from its price level of one year ago. 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.

You can view the full analysis from the report here: Sypris Solutions 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, Kewaunee Scientific ( KEQU) was up $0.48 (2.7%) to $18.00 on average volume. Throughout the day, 2,708 shares of Kewaunee Scientific exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in a price between $17.75-$18.00 after having opened the day at $17.89 as compared to the previous trading day's close of $17.52.

Kewaunee Scientific Corporation designs, manufactures, and installs laboratory, healthcare, and technical furniture products. The company operates through two segments, Domestic Operations and International Operations. Kewaunee Scientific has a market cap of $47.3 million and is part of the consumer durables industry. Shares are up 1.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Kewaunee Scientific 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 Kewaunee Scientific as a buy. 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, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on KEQU go as follows:

  • The revenue growth came in higher than the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 15.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • KEQU's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, KEQU has a quick ratio of 1.77, which demonstrates the ability of the company to cover short-term liquidity needs.
  • KEWAUNEE SCIENTIFIC CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, KEWAUNEE SCIENTIFIC CORP increased its bottom line by earning $1.48 versus $1.17 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 65.8% when compared to the same quarter one year prior, rising from $0.73 million to $1.20 million.

You can view the full analysis from the report here: Kewaunee Scientific 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.

CTI Industries ( CTIB) was another company that pushed the Consumer Goods sector higher today. CTI Industries was up $0.22 (5.6%) to $4.15 on average volume. Throughout the day, 4,413 shares of CTI Industries exchanged hands as compared to its average daily volume of 4,400 shares. The stock ranged in a price between $3.99-$4.17 after having opened the day at $4.00 as compared to the previous trading day's close of $3.93.

CTI Industries Corporation develops, manufactures, and supplies flexible film products for novelty, packaging and container, and custom product applications worldwide. CTI Industries has a market cap of $13.2 million and is part of the consumer durables industry. Shares are up 6.4% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate CTI Industries a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CTI Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk, weak operating cash flow, unimpressive growth in net income and poor profit margins.

Highlights from TheStreet Ratings analysis on CTIB go as follows:

  • Looking at the price performance of CTIB's shares over the past 12 months, there is not much good news to report: the stock is down 32.71%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CTIB is still more expensive than most of the other companies in its industry.
  • Currently the debt-to-equity ratio of 1.74 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, CTIB has a quick ratio of 0.53, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly decreased to -$2.86 million or 124.56% 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 change in net income from the same quarter one year ago has exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income has decreased by 11.5% when compared to the same quarter one year ago, dropping from $0.24 million to $0.21 million.
  • The gross profit margin for CTI INDUSTRIES CORP is currently lower than what is desirable, coming in at 29.28%. Regardless of CTIB'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 1.42% trails the industry average.

You can view the full analysis from the report here: CTI 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.

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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