3 Stocks Pushing The Consumer Non-Durables Industry 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.

The Consumer Non-Durables industry as a whole closed the day down 0.4% versus the S&P 500, which was down 0.5%. Laggards within the Consumer Non-Durables industry included China Shengda Packaging Group ( CPGI), down 3.9%, CCA Industries ( CAW), down 1.5%, DS Healthcare Group ( DSKX), down 3.1%, China Xiniya Fashion ( XNY), down 2.4% and EveryWare Global ( EVRY), down 2.1%.

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

China Xiniya Fashion ( XNY) is one of the companies that pushed the Consumer Non-Durables industry lower today. China Xiniya Fashion was down $0.05 (2.4%) to $2.00 on light volume. Throughout the day, 6,432 shares of China Xiniya Fashion exchanged hands as compared to its average daily volume of 35,500 shares. The stock ranged in price between $1.95-$2.05 after having opened the day at $2.02 as compared to the previous trading day's close of $2.05.

China Xiniya Fashion Limited designs, manufactures, and sells men's business casual and business formal apparel and accessories to retail customers in the People's Republic of China. China Xiniya Fashion has a market cap of $28.5 million and is part of the consumer goods sector. Shares are down 7.2% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates China Xiniya 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 generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on XNY go as follows:

  • CHINA XINIYA 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, CHINA XINIYA FASHION LTD-ADR reported lower earnings of $1.12 versus $1.92 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 3467.5% when compared to the same quarter one year ago, falling from $1.00 million to -$33.51 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, CHINA XINIYA 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 CHINA XINIYA FASHION LTD-ADR is currently lower than what is desirable, coming in at 27.61%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -98.16% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 58.69%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 3050.00% compared to the year-earlier 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.

You can view the full analysis from the report here: China Xiniya 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.

At the close, DS Healthcare Group ( DSKX) was down $0.03 (3.1%) to $0.88 on light volume. Throughout the day, 17,536 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 50,300 shares. The stock ranged in price between $0.84-$0.90 after having opened the day at $0.84 as compared to the previous trading day's close of $0.91.

DS Healthcare Group has a market cap of $14.4 million and is part of the consumer goods sector. Shares are up 22.7% year-to-date as of the close of trading on Tuesday.

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China Shengda Packaging Group ( CPGI) was another company that pushed the Consumer Non-Durables industry lower today. China Shengda Packaging Group was down $0.04 (3.9%) to $0.99 on light volume. Throughout the day, 500 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 3,100 shares. The stock ranged in price between $0.99-$0.99 after having opened the day at $0.99 as compared to the previous trading day's close of $1.03.

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 $40.0 million and is part of the consumer goods sector. Shares are up 11.0% year-to-date as of the close of trading on Tuesday.

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, a generally disappointing performance in the stock itself and poor profit margins.

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Highlights from TheStreet Ratings analysis on CPGI go as follows:

  • The revenue growth came in higher than the industry average of 4.8%. 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.
  • In its most recent trading session, CPGI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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.

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