3 Consumer Non-Durables Stocks Nudging The Industry Higher

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 139 points (0.8%) at 17,996 as of Monday, March 9, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,624 issues advancing vs. 1,454 declining with 140 unchanged.

The Consumer Non-Durables industry as a whole was unchanged today versus the S&P 500, which was up 0.4%. Top gainers within the Consumer Non-Durables industry included Fuwei Films (Holdings ( FFHL), up 3.2%, DS Healthcare Group ( DSKX), up 3.3%, Orient Paper ( ONP), up 6.1%, Nutraceutical International ( NUTR), up 3.0% and Verso ( VRS), up 2.1%.

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

Orient Paper ( ONP) is one of the companies that pushed the Consumer Non-Durables industry higher today. Orient Paper was up $0.07 (6.1%) to $1.22 on average volume. Throughout the day, 69,962 shares of Orient Paper exchanged hands as compared to its average daily volume of 50,400 shares. The stock ranged in a price between $1.15-$1.27 after having opened the day at $1.22 as compared to the previous trading day's close of $1.15.

Orient Paper, Inc. produces and distributes packaging and printing paper products in the People's Republic of China. It operates through two segments, Orient Paper HB and Orient Paper Shengde. Orient Paper has a market cap of $19.3 million and is part of the consumer goods sector. Shares are up 4.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Orient Paper a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Orient Paper as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on ONP go as follows:

  • ONP's revenue growth has slightly outpaced the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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.
  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that ONP's debt-to-equity ratio is low, the quick ratio, which is currently 0.53, displays a potential problem in covering short-term cash needs.
  • The gross profit margin for ORIENT PAPER INC is rather low; currently it is at 20.66%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 8.27% is above that of the industry average.
  • ORIENT PAPER INC's earnings per share declined by 40.0% in the most recent quarter compared to 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, ORIENT PAPER INC reported lower earnings of $0.71 versus $0.80 in the prior year.

You can view the full analysis from the report here: Orient Paper 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 up $0.03 (3.3%) to $0.93 on average volume. Throughout the day, 50,266 shares of DS Healthcare Group exchanged hands as compared to its average daily volume of 49,800 shares. The stock ranged in a price between $0.88-$0.95 after having opened the day at $0.93 as compared to the previous trading day's close of $0.90.

DS Healthcare Group has a market cap of $14.1 million and is part of the consumer goods sector. Shares are up 21.6% year-to-date as of the close of trading on Friday.

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 Non-Durables industry higher today. Fuwei Films (Holdings was up $0.02 (3.2%) to $0.65 on light volume. Throughout the day, 150 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 8,500 shares. The stock ranged in a price between $0.65-$0.65 after having opened the day at $0.65 as compared to the previous trading day's close of $0.63.

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 $7.8 million and is part of the consumer goods sector. Shares are down 9.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Fuwei Films (Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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.

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 55.89%, 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.

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.

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