3 Stocks Pushing The Consumer Durables Industry Lower

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The Consumer Durables industry as a whole closed the day down 1.2% versus the S&P 500, which was down 1.7%. Laggards within the Consumer Durables industry included Kewaunee Scientific ( KEQU), down 2.0%, Koss ( KOSS), down 4.3%, Virco Manufacturing ( VIRC), down 1.6%, SGOCO Group ( SGOC), down 6.7% and Acme United ( ACU), down 1.9%.

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

Acme United ( ACU) is one of the companies that pushed the Consumer Durables industry lower today. Acme United was down $0.37 (1.9%) to $18.63 on light volume. Throughout the day, 1,525 shares of Acme United exchanged hands as compared to its average daily volume of 7,200 shares. The stock ranged in price between $18.63-$19.00 after having opened the day at $18.98 as compared to the previous trading day's close of $19.00.

Acme United Corporation, together with its subsidiaries, supplies cutting, measuring, and first aid products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and Asia. Acme United has a market cap of $62.6 million and is part of the consumer goods sector. Shares are down 4.8% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Acme United a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Acme United as a buy. 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, solid stock price performance, growth in earnings per share and reasonable valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from TheStreet Ratings analysis on ACU go as follows:

  • The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 15.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.42, which illustrates the ability to avoid short-term cash problems.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • ACME UNITED CORP has improved earnings per share by 26.7% 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. We feel that this trend should continue. During the past fiscal year, ACME UNITED CORP increased its bottom line by earning $1.36 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($1.54 versus $1.36).

You can view the full analysis from the report here: Acme United Ratings Report

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At the close, Virco Manufacturing ( VIRC) was down $0.04 (1.6%) to $2.40 on light volume. Throughout the day, 9,170 shares of Virco Manufacturing exchanged hands as compared to its average daily volume of 27,000 shares. The stock ranged in price between $2.40-$2.41 after having opened the day at $2.41 as compared to the previous trading day's close of $2.44.

Virco Mfg. Corporation is engaged in the design, production, and distribution of furniture for the commercial and education markets in the United States. Virco Manufacturing has a market cap of $36.2 million and is part of the consumer goods sector. Shares are unchanged year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Virco Manufacturing a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Virco Manufacturing as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on VIRC go as follows:

  • VIRC's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 5.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • VIRCO MFG. CORP has improved earnings per share by 34.8% 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, VIRCO MFG. CORP continued to lose money by earning -$0.13 versus -$0.27 in the prior year. This year, the market expects an improvement in earnings (-$0.02 versus -$0.13).
  • VIRC'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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Services & Supplies industry average, but is greater than that of the S&P 500. The net income increased by 35.9% when compared to the same quarter one year prior, rising from $3.41 million to $4.63 million.
  • VIRC has underperformed the S&P 500 Index, declining 6.67% 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.

You can view the full analysis from the report here: Virco Manufacturing 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.

Kewaunee Scientific ( KEQU) was another company that pushed the Consumer Durables industry lower today. Kewaunee Scientific was down $0.36 (2.0%) to $17.34 on light volume. Throughout the day, 709 shares of Kewaunee Scientific exchanged hands as compared to its average daily volume of 2,300 shares. The stock ranged in price between $17.34-$18.00 after having opened the day at $18.00 as compared to the previous trading day's close of $17.70.

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 $44.6 million and is part of the consumer goods sector. Shares are down 0.6% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Kewaunee Scientific as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from TheStreet Ratings analysis on KEQU go as follows:

  • KEQU's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 6.7%. 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.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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's earnings per share declined by 18.2% 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, KEWAUNEE SCIENTIFIC CORP increased its bottom line by earning $1.48 versus $1.17 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 Health Care Equipment & Supplies industry. The net income has decreased by 19.9% when compared to the same quarter one year ago, dropping from $0.60 million to $0.48 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.

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