3 Stocks Pushing The Consumer Durables Industry Lower

The Consumer Durables industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.8%. Laggards within the Consumer Durables industry included SGOCO Group ( SGOC), down 8.3%, Ballantyne Strong ( BTN), down 4.0%, Vuzix Corporation ( VUZI), down 5.5%, Hooker Furniture ( HOFT), down 2.1% and Bassett Furniture Industries ( BSET), down 7.0%.

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

Hooker Furniture ( HOFT) is one of the companies that pushed the Consumer Durables industry lower today. Hooker Furniture was down $0.51 (2.1%) to $24.07 on light volume. Throughout the day, 27,402 shares of Hooker Furniture exchanged hands as compared to its average daily volume of 103,200 shares. The stock ranged in price between $23.85-$25.07 after having opened the day at $24.54 as compared to the previous trading day's close of $24.58.

Hooker Furniture Corporation operates as a home furnishings marketing, design, and logistics company primarily in North America. It designs, imports, manufactures, and markets residential household furniture products. Hooker Furniture has a market cap of $265.5 million and is part of the consumer goods sector. Shares are up 43.2% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Hooker Furniture a buy, no analysts rate it a sell, and 1 rates it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates Hooker Furniture as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on HOFT go as follows:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 70.69% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HOFT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • HOOKER FURNITURE CORP has improved earnings per share by 23.1% 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, HOOKER FURNITURE CORP increased its bottom line by earning $1.17 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $1.17).
  • HOFT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.04, which clearly demonstrates the ability to cover short-term cash needs.
  • HOFT, with its decline in revenue, slightly underperformed the industry average of 7.2%. Since the same quarter one year prior, revenues slightly dropped by 0.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: Hooker Furniture Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

At the close, Vuzix Corporation ( VUZI) was down $0.28 (5.5%) to $4.77 on average volume. Throughout the day, 144,912 shares of Vuzix Corporation exchanged hands as compared to its average daily volume of 109,000 shares. The stock ranged in price between $4.65-$5.05 after having opened the day at $4.96 as compared to the previous trading day's close of $5.05.

Vuzix Corporation designs, manufactures, markets, and sells wearable display devices in the United States and internationally. Vuzix Corporation has a market cap of $79.8 million and is part of the consumer goods sector. Shares are up 15.8% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Vuzix Corporation a buy, no analysts rate it a sell, and none rate it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates Vuzix Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on VUZI 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 Household Durables industry. The net income has significantly decreased by 436.7% when compared to the same quarter one year ago, falling from $1.51 million to -$5.09 million.
  • Net operating cash flow has significantly decreased to -$2.75 million or 156.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 35.72% is the gross profit margin for VUZIX CORP which we consider to be strong. Regardless of VUZI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VUZI's net profit margin of -629.29% significantly underperformed when compared to the industry average.
  • Compared to other companies in the Household Durables industry and the overall market, VUZIX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • VUZIX CORP 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VUZIX CORP continued to lose money by earning -$0.76 versus -$1.58 in the prior year. This year, the market expects an improvement in earnings (-$0.67 versus -$0.76).

You can view the full analysis from the report here: Vuzix Corporation Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Ballantyne Strong ( BTN) was another company that pushed the Consumer Durables industry lower today. Ballantyne Strong was down $0.17 (4.0%) to $4.08 on heavy volume. Throughout the day, 173,787 shares of Ballantyne Strong exchanged hands as compared to its average daily volume of 24,800 shares. The stock ranged in price between $3.42-$4.15 after having opened the day at $3.95 as compared to the previous trading day's close of $4.25.

Ballantyne Strong, Inc. designs, integrates, and installs technology solutions for retail, financial, government, and cinema markets worldwide. The company operates in two segments, Systems Integration and Managed Services. Ballantyne Strong has a market cap of $61.1 million and is part of the consumer goods sector. Shares are up 2.7% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Ballantyne Strong 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Highlights from TheStreet Ratings analysis on BTN go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 2.0%. 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.
  • BTN's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BTN has a quick ratio of 2.41, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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 Media industry. The net income has significantly decreased by 1611.1% when compared to the same quarter one year ago, falling from -$0.59 million to -$10.16 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 Media industry and the overall market, BALLANTYNE STRONG INC'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: Ballantyne Strong Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Boeing Slides as China Premier Li Says Willing to Continue Talks With Airbus

Boeing Slides as China Premier Li Says Willing to Continue Talks With Airbus

Stocks Slammed on Latest Trump Tariff Fears

Stocks Slammed on Latest Trump Tariff Fears

Overstock Needs a Catalyst, Says Analyst

Overstock Needs a Catalyst, Says Analyst

American Express Shares Climb After Winning Supreme Court Case

American Express Shares Climb After Winning Supreme Court Case

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists