3 Stocks Advancing The Consumer Non-Durables Industry

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 242 points (1.4%) at 17,615 as of Monday, Aug. 10, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,351 issues advancing vs. 737 declining with 111 unchanged.

The Consumer Non-Durables industry as a whole closed the day up 1.4% versus the S&P 500, which was up 1.3%. Top gainers within the Consumer Non-Durables industry included Swisher Hygiene ( SWSH), up 5.5%, Fuwei Films (Holdings ( FFHL), up 2.0%, Ever-Glory International Group ( EVK), up 2.2%, Deswell Industries ( DSWL), up 1.7% and Verso ( VRS), up 32.0%.

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

Deswell Industries ( DSWL) is one of the companies that pushed the Consumer Non-Durables industry higher today. Deswell Industries was up $0.03 (1.7%) to $1.80 on light volume. Throughout the day, 1,076 shares of Deswell Industries exchanged hands as compared to its average daily volume of 24,800 shares. The stock ranged in a price between $1.77-$1.80 after having opened the day at $1.77 as compared to the previous trading day's close of $1.77.

Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components; and assembles electronic products for original equipment manufacturers and contract manufacturers. Deswell Industries has a market cap of $28.7 million and is part of the consumer goods sector. Shares are down 1.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Deswell Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Deswell Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on DSWL go as follows:

  • Net operating cash flow has significantly decreased to -$0.31 million or 447.72% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • DSWL has underperformed the S&P 500 Index, declining 16.36% 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 gross profit margin for DESWELL INDUSTRIES INC is currently lower than what is desirable, coming in at 29.46%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.16% trails the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
  • DESWELL INDUSTRIES INC 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 year. During the past fiscal year, DESWELL INDUSTRIES INC continued to lose money by earning -$0.14 versus -$0.47 in the prior year.

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

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At the close, Fuwei Films (Holdings ( FFHL) was up $0.02 (2.0%) to $1.03 on light volume. Throughout the day, 160 shares of Fuwei Films (Holdings exchanged hands as compared to its average daily volume of 13,500 shares. The stock ranged in a price between $1.03-$1.03 after having opened the day at $1.03 as compared to the previous trading day's close of $1.01.

Fuwei Films (Holdings) Co., Ltd., together with its subsidiaries, produces 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 $12.3 million and is part of the consumer goods sector. Shares are up 51.8% 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.

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TheStreet Ratings rates Fuwei Films (Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on FFHL go as follows:

  • FUWEI FILMS HOLDINGS CO's earnings per share declined by 18.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, FUWEI FILMS HOLDINGS CO reported poor results of -$0.87 versus -$0.74 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Chemicals industry average. The net income has decreased by 13.2% when compared to the same quarter one year ago, dropping from -$2.14 million to -$2.42 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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.
  • The gross profit margin for FUWEI FILMS HOLDINGS CO is currently extremely low, coming in at 7.95%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -28.41% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$1.24 million or 210.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Fuwei Films (Holdings Ratings Report

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Swisher Hygiene ( SWSH) was another company that pushed the Consumer Non-Durables industry higher today. Swisher Hygiene was up $0.03 (5.5%) to $0.58 on average volume. Throughout the day, 28,651 shares of Swisher Hygiene exchanged hands as compared to its average daily volume of 23,900 shares. The stock ranged in a price between $0.50-$0.62 after having opened the day at $0.55 as compared to the previous trading day's close of $0.55.

Swisher Hygiene Inc. provides hygiene and sanitizing solutions. It solutions include cleaning and sanitizing chemicals and restroom hygiene programs, as well as a range of related products and services. Swisher Hygiene has a market cap of $9.7 million and is part of the consumer goods sector. Shares are down 70.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Swisher Hygiene a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Swisher Hygiene as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on SWSH go as follows:

  • Net operating cash flow has significantly decreased to -$5.94 million or 370.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • SWSH'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 86.08%, 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 company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, SWISHER HYGIENE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SWISHER HYGIENE INC is rather high; currently it is at 54.47%. Regardless of SWSH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SWSH's net profit margin of -20.14% significantly underperformed when compared to the industry average.
  • SWSH, with its decline in revenue, slightly underperformed the industry average of 5.2%. Since the same quarter one year prior, revenues slightly dropped by 9.2%. 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: Swisher Hygiene Ratings Report

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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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