3 Stocks Pushing The Consumer Goods Sector Lower

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The Consumer Goods sector as a whole closed the day up 0.1% versus the S&P 500, which was up 0.1%. Laggards within the Consumer Goods sector included Fuwei Films (Holdings ( FFHL), down 1.7%, BRASILAGRO - CIA Bras de Prop Agricolas ( LND), down 3.0%, Ever-Glory International Group ( EVK), down 2.2%, Truett-Hurst ( THST), down 2.6% and SORL Auto Parts ( SORL), down 3.6%.

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

SORL Auto Parts ( SORL) is one of the companies that pushed the Consumer Goods sector lower today. SORL Auto Parts was down $0.12 (3.6%) to $3.20 on light volume. Throughout the day, 5,850 shares of SORL Auto Parts exchanged hands as compared to its average daily volume of 12,800 shares. The stock ranged in price between $3.20-$3.34 after having opened the day at $3.32 as compared to the previous trading day's close of $3.32.

SORL Auto Parts, Inc. develops, manufactures, and distributes automotive brake systems and other safety related auto parts. It operates in two segments, Commercial Vehicles Brake Systems, etc.; and Passenger Vehicles Brake Systems, etc. SORL Auto Parts has a market cap of $62.2 million and is part of the consumer non-durables industry. Shares are down 10.0% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates SORL Auto Parts a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates SORL Auto Parts as a hold. 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 and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on SORL go as follows:

  • SORL's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SORL's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SORL has a quick ratio of 2.31, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Auto Components industry. The net income has decreased by 12.4% when compared to the same quarter one year ago, dropping from $3.31 million to $2.90 million.
  • 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. In comparison to the other companies in the Auto Components industry and the overall market, SORL AUTO PARTS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: SORL Auto Parts Ratings Report

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At the close, Truett-Hurst ( THST) was down $0.06 (2.6%) to $2.20 on light volume. Throughout the day, 11,088 shares of Truett-Hurst exchanged hands as compared to its average daily volume of 18,800 shares. The stock ranged in price between $2.20-$2.27 after having opened the day at $2.25 as compared to the previous trading day's close of $2.26.

Truett-Hurst, Inc. produces, markets, and sells wines primarily in the United States. The company operates through Wholesale, Direct to Consumer, and Internet segments. Truett-Hurst has a market cap of $8.5 million and is part of the consumer non-durables industry. Shares are down 43.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Truett-Hurst a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Truett-Hurst as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on THST go as follows:

  • 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 Beverages industry. The net income has significantly decreased by 1285.0% when compared to the same quarter one year ago, falling from $0.04 million to -$0.47 million.
  • The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.39, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Beverages industry and the overall market, TRUETT-HURST INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 59.19%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1400.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • TRUETT-HURST INC 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 year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TRUETT-HURST INC swung to a loss, reporting -$0.16 versus $0.08 in the prior year. This year, the market expects an improvement in earnings ($0.10 versus -$0.16).

You can view the full analysis from the report here: Truett-Hurst Ratings Report

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Fuwei Films (Holdings ( FFHL) was another company that pushed the Consumer Goods sector lower today. Fuwei Films (Holdings was down $0.01 (1.7%) to $0.60 on light volume. Throughout the day, 100 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 8,800 shares. The stock ranged in price between $0.60-$0.60 after having opened the day at $0.60 as compared to the previous trading day's close of $0.61.

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 $8.0 million and is part of the consumer non-durables industry. Shares are down 8.3% 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.

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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 46.73%, 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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