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.

The Consumer Goods sector as a whole closed the day down 1.1% versus the S&P 500, which was down 1.3%. Laggards within the Consumer Goods sector included China Shengda Packaging Group ( CPGI), down 15.8%, BRASILAGRO - CIA Bras de Prop Agricolas ( LND), down 3.4%, Forward Industries ( FORD), down 5.0%, Deswell Industries ( DSWL), down 1.5% and Kewaunee Scientific ( KEQU), down 1.6%.

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

Kewaunee Scientific ( KEQU) is one of the companies that pushed the Consumer Goods sector lower today. Kewaunee Scientific was down $0.27 (1.6%) to $16.98 on light volume. Throughout the day, 1,325 shares of Kewaunee Scientific exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in price between $16.98-$17.89 after having opened the day at $17.89 as compared to the previous trading day's close of $17.25.

Kewaunee Scientific Corporation designs, manufactures, and installs laboratory, healthcare, and technical furniture products. The company operates through two segments, Domestic Operations and International Operations. Kewaunee Scientific has a market cap of $46.4 million and is part of the food & beverage industry. Shares are down 3.1% year-to-date as of the close of trading on Thursday.

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 Kewaunee Scientific as a buy. 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, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on KEQU go as follows:

  • The revenue growth came in higher than the industry average of 0.9%. Since the same quarter one year prior, revenues rose by 15.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • KEQU's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, KEQU has a quick ratio of 1.77, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
  • KEWAUNEE SCIENTIFIC CORP reported significant earnings per share improvement 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 two years. During the past fiscal year, KEWAUNEE SCIENTIFIC CORP increased its bottom line by earning $1.48 versus $1.17 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 65.8% when compared to the same quarter one year prior, rising from $0.73 million to $1.20 million.

You can view the full analysis from the report here: Kewaunee Scientific 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, Deswell Industries ( DSWL) was down $0.03 (1.5%) to $1.90 on light volume. Throughout the day, 8,600 shares of Deswell Industries exchanged hands as compared to its average daily volume of 17,600 shares. The stock ranged in price between $1.90-$1.94 after having opened the day at $1.90 as compared to the previous trading day's close of $1.93.

Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components, electronic products, assembling, and metallic parts for original equipment manufacturers and contract manufacturers. Deswell Industries has a market cap of $30.8 million and is part of the food & beverage industry. Shares are up 7.2% year-to-date as of the close of trading on Thursday.

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 Deswell Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on DSWL go as follows:

  • 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 Electronic Equipment, Instruments & Components industry and the overall market, DESWELL INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DESWELL INDUSTRIES INC is currently extremely low, coming in at 8.69%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -10.45% is significantly below that of the industry average.
  • DSWL has underperformed the S&P 500 Index, declining 18.07% from its price level of one year ago. 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, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Electronic Equipment, Instruments & Components industry average, but is greater than that of the S&P 500. The net income increased by 20.3% when compared to the same quarter one year prior, going from -$1.42 million to -$1.13 million.
  • DESWELL INDUSTRIES INC has improved earnings per share by 22.2% 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, DESWELL INDUSTRIES INC reported poor results of -$0.47 versus -$0.12 in the prior year.

You can view the full analysis from the report here: Deswell Industries 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.

China Shengda Packaging Group ( CPGI) was another company that pushed the Consumer Goods sector lower today. China Shengda Packaging Group was down $0.18 (15.8%) to $0.96 on average volume. Throughout the day, 3,050 shares of China Shengda Packaging Group exchanged hands as compared to its average daily volume of 3,000 shares. The stock ranged in price between $0.94-$1.14 after having opened the day at $1.14 as compared to the previous trading day's close of $1.14.

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 $38.4 million and is part of the food & beverage industry. Shares are up 22.8% year-to-date as of the close of trading on Thursday.

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.

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 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.

More from Markets

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'