3 Consumer Non-Durables Stocks Pushing Industry 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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 47 points (0.3%) at 18,019 as of Friday, Feb. 13, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,931 issues advancing vs. 1,153 declining with 128 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.4%. Top gainers within the Consumer Non-Durables industry included Standard Register ( SR), up 6.8%, STR Holdings ( STRI), up 2.5%, Ocean Bio-Chem ( OBCI), up 6.9%, Joe's Jeans ( JOEZ), up 14.2% and Rocky Brands ( RCKY), up 30.7%.

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

Joe's Jeans ( JOEZ) is one of the companies that pushed the Consumer Non-Durables industry higher today. Joe's Jeans was up $0.05 (14.2%) to $0.38 on average volume. Throughout the day, 514,801 shares of Joe's Jeans exchanged hands as compared to its average daily volume of 350,100 shares. The stock ranged in a price between $0.34-$0.38 after having opened the day at $0.34 as compared to the previous trading day's close of $0.33.

Joe's Jeans Inc. designs, develops, and markets apparel products in the United States. It operates through two segments, Wholesale and Retail. The company provides women's and men's denim jeans, pants, shirts, sweaters, jackets, and other apparel products. Joe's Jeans has a market cap of $38.3 million and is part of the consumer goods sector. Shares are up 66.8% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Joe's Jeans a buy, no analysts rate it a sell, and 1 rates 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 Joe's Jeans as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and weak operating cash flow.

Highlights from TheStreet Ratings analysis on JOEZ go as follows:

  • Currently the debt-to-equity ratio of 1.61 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, JOEZ maintains a poor quick ratio of 0.73, which illustrates the inability to avoid short-term cash problems.
  • Net operating cash flow has significantly decreased to -$2.41 million or 210.92% 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 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 Textiles, Apparel & Luxury Goods industry and the overall market, JOE'S JEANS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • This stock's share value has moved by only 68.11% over the past year. 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.
  • JOE'S JEANS INC has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, JOE'S JEANS INC swung to a loss, reporting -$0.11 versus $0.08 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.11).

You can view the full analysis from the report here: Joe's Jeans 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, STR Holdings ( STRI) was up $0.04 (2.5%) to $1.65 on average volume. Throughout the day, 66,808 shares of STR Holdings exchanged hands as compared to its average daily volume of 54,600 shares. The stock ranged in a price between $1.57-$1.65 after having opened the day at $1.61 as compared to the previous trading day's close of $1.61.

STR Holdings, Inc., together with its subsidiaries, designs, develops, manufactures, and sells encapsulants for solar module manufacturers worldwide. Its encapsulants protect the embedded semiconductor circuits of solar panels. STR Holdings has a market cap of $14.3 million and is part of the consumer goods sector. Shares are down 60.8% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates STR Holdings 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 STR Holdings as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on STRI go as follows:

  • STRI'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 66.00%, 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 company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, STR HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to -$5.22 million or 46.95% when compared to the same quarter last year. In addition, STR HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -78.25%.
  • STRI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.92, which clearly demonstrates the ability to cover short-term cash needs.
  • STR HOLDINGS INC has improved earnings per share by 14.3% 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, STR HOLDINGS INC continued to lose money by earning -$1.32 versus -$15.36 in the prior year. This year, the market expects an improvement in earnings (-$1.23 versus -$1.32).

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

Standard Register ( SR) was another company that pushed the Consumer Non-Durables industry higher today. Standard Register was up $0.08 (6.8%) to $1.25 on heavy volume. Throughout the day, 235,455 shares of Standard Register exchanged hands as compared to its average daily volume of 50,400 shares. The stock ranged in a price between $1.19-$1.47 after having opened the day at $1.24 as compared to the previous trading day's close of $1.17.

Standard Register has a market cap of $8.9 million and is part of the consumer goods sector. Shares are down 64.1% year-to-date as of the close of trading on Thursday.

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.

More from Markets

Aramco Considers M&A Ahead of IPO; Danaher to Split -- ICYMI

Aramco Considers M&A Ahead of IPO; Danaher to Split -- ICYMI

Tuesday Was a 'Prime' Shopping Day for Many Retailers, Not Just Amazon

Tuesday Was a 'Prime' Shopping Day for Many Retailers, Not Just Amazon

Dow Falls, Breaking 5-Day Winning Streak on Beige Book Trade-War Worries

Dow Falls, Breaking 5-Day Winning Streak on Beige Book Trade-War Worries

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

IBM Rides the Cloud to New Heights

IBM Rides the Cloud to New Heights