3 Stocks Pushing The Consumer Goods Sector Lower

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The Consumer Goods sector as a whole closed the day up 0.8% versus the S&P 500, which was up 1.0%. Laggards within the Consumer Goods sector included Fuwei Films (Holdings ( FFHL), down 3.4%, Forward Industries ( FORD), down 2.2%, Koss ( KOSS), down 5.7%, Golden ( GLDC), down 4.1% and Zuoan Fashion ( ZA), down 2.9%.

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

Bunge ( BG) is one of the companies that pushed the Consumer Goods sector lower today. Bunge was down $10.70 (11.7%) to $80.44 on heavy volume. Throughout the day, 5,778,019 shares of Bunge exchanged hands as compared to its average daily volume of 889,000 shares. The stock ranged in price between $80.00-$87.00 after having opened the day at $85.63 as compared to the previous trading day's close of $91.14.

Bunge Limited, through its subsidiaries, is engaged in agriculture and food businesses worldwide. It operates through five segments: Agribusiness, Sugar and Bioenergy, Edible Oil Products, Milling Products, and Fertilizer. Bunge has a market cap of $13.3 billion and is part of the food & beverage industry. Shares are up 0.6% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts who rate Bunge a buy, 1 analyst rates it a sell, and 4 rate it a hold.

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TheStreet Ratings rates Bunge as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on BG go as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 298.6% when compared to the same quarter one year prior, rising from -$148.00 million to $294.00 million.
  • Net operating cash flow has increased to $1,907.00 million or 35.15% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.15%.
  • The debt-to-equity ratio is somewhat low, currently at 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that BG's debt-to-equity ratio is low, the quick ratio, which is currently 0.60, displays a potential problem in covering short-term cash needs.

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

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At the close, Zuoan Fashion ( ZA) was down $0.02 (2.9%) to $0.50 on light volume. Throughout the day, 36,101 shares of Zuoan Fashion exchanged hands as compared to its average daily volume of 67,600 shares. The stock ranged in price between $0.48-$0.54 after having opened the day at $0.53 as compared to the previous trading day's close of $0.52.

Zuoan Fashion Limited designs, manufactures, distributes, and retails fashion casual menswear. Zuoan Fashion has a market cap of $15.0 million and is part of the food & beverage industry. Shares are down 37.2% year-to-date as of the close of trading on Wednesday.

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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 $0.02 (3.4%) to $0.60 on light volume. Throughout the day, 2,985 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 11,700 shares. The stock ranged in price between $0.58-$0.63 after having opened the day at $0.58 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 $9.1 million and is part of the food & beverage industry. Shares are up 4.8% year-to-date as of the close of trading on Wednesday.

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.

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

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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