3 Stocks Pushing The Consumer Goods Sector Lower

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.

The Consumer Goods sector as a whole was unchanged today versus the S&P 500, which was unchanged. Laggards within the Consumer Goods sector included Fuwei Films (Holdings ( FFHL), down 10.9%, Forward Industries ( FORD), down 2.1%, Ever-Glory International Group ( EVK), down 2.7%, Golden ( GLDC), down 1.9% and Zuoan Fashion ( ZA), down 4.6%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

ACCO Brands ( ACCO) is one of the companies that pushed the Consumer Goods sector lower today. ACCO Brands was down $0.56 (6.9%) to $7.51 on heavy volume. Throughout the day, 3,080,511 shares of ACCO Brands exchanged hands as compared to its average daily volume of 947,800 shares. The stock ranged in price between $7.05-$7.78 after having opened the day at $7.45 as compared to the previous trading day's close of $8.07.

ACCO Brands Corporation manufactures and markets office, school, and calendar products, and select computer and electronic accessories primarily in the Unites States, Northern Europe, Canada, Australia, Brazil, and Mexico. ACCO Brands has a market cap of $882.3 million and is part of the consumer non-durables industry. Shares are down 10.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates ACCO Brands a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates ACCO Brands as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on ACCO go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Services & Supplies industry average. The net income increased by 29.5% when compared to the same quarter one year prior, rising from $26.40 million to $34.20 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.3%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 26.08% and other important driving factors, this stock has surged by 38.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • ACCO BRANDS CORP has improved earnings per share by 26.1% 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, ACCO BRANDS CORP reported lower earnings of $0.66 versus $1.02 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.66).

You can view the full analysis from the report here: ACCO Brands Ratings Report

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At the close, Zuoan Fashion ( ZA) was down $0.02 (4.6%) to $0.52 on light volume. Throughout the day, 13,125 shares of Zuoan Fashion exchanged hands as compared to its average daily volume of 68,500 shares. The stock ranged in price between $0.51-$0.53 after having opened the day at $0.51 as compared to the previous trading day's close of $0.54.

Zuoan Fashion Limited designs, manufactures, distributes, and retails fashion casual menswear. Zuoan Fashion has a market cap of $14.5 million and is part of the consumer non-durables industry. Shares are down 34.2% year-to-date as of the close of trading on Tuesday.

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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.

Fuwei Films (Holdings ( FFHL) was another company that pushed the Consumer Goods sector lower today. Fuwei Films (Holdings was down $0.08 (10.9%) to $0.62 on light volume. Throughout the day, 1,150 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 11,600 shares. The stock ranged in price between $0.62-$0.68 after having opened the day at $0.68 as compared to the previous trading day's close of $0.70.

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 $7.2 million and is part of the consumer non-durables industry. Shares are up 4.8% year-to-date as of the close of trading on Tuesday.

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.

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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 41.74%, 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.

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