3 Stocks Boosting The Consumer Goods Sector Higher

One out of the three major indices traded up today Two out of the three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading down 0.33 points (0.0%) at 17,403 as of Wednesday, Aug. 12, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,537 issues advancing vs. 1,563 declining with 108 unchanged.

The Consumer Goods sector as a whole closed the day down 0.5% versus the S&P 500, which was up 0.1%. Top gainers within the Consumer Goods sector included Leading Brands ( LBIX), up 2.6%, STR Holdings ( STRI), up 26.1%, Bridgford Foods ( BRID), up 8.3%, Sypris Solutions ( SYPR), up 13.8% and China Xiniya Fashion ( XNY), up 1.6%.

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

Sypris Solutions ( SYPR) is one of the companies that pushed the Consumer Goods sector higher today. Sypris Solutions was up $0.15 (13.8%) to $1.24 on heavy volume. Throughout the day, 139,155 shares of Sypris Solutions exchanged hands as compared to its average daily volume of 23,900 shares. The stock ranged in a price between $0.96-$1.40 after having opened the day at $1.00 as compared to the previous trading day's close of $1.09.

Sypris Solutions, Inc. offers outsourced services and specialty products in the United States, Mexico, Denmark, and the United Kingdom. Sypris Solutions has a market cap of $22.5 million and is part of the consumer durables industry. Shares are down 59.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Sypris Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Sypris Solutions as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on SYPR 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 Auto Components industry. The net income has significantly decreased by 888.9% when compared to the same quarter one year ago, falling from $1.65 million to -$13.03 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 Auto Components industry and the overall market, SYPRIS SOLUTIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$5.32 million or 312.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 72.29%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 925.00% compared to the year-earlier 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.
  • SYPRIS SOLUTIONS INC 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SYPRIS SOLUTIONS INC continued to lose money by earning -$0.07 versus -$0.52 in the prior year. For the next year, the market is expecting a contraction of 1614.3% in earnings (-$1.20 versus -$0.07).

You can view the full analysis from the report here: Sypris Solutions Ratings Report

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At the close, STR Holdings ( STRI) was up $0.23 (26.1%) to $1.11 on heavy volume. Throughout the day, 257,177 shares of STR Holdings exchanged hands as compared to its average daily volume of 27,700 shares. The stock ranged in a price between $0.88-$1.11 after having opened the day at $0.91 as compared to the previous trading day's close of $0.88.

STR Holdings, Inc., together with its subsidiaries, operates as a plastic and industrial materials research and development company worldwide. STR Holdings has a market cap of $15.6 million and is part of the consumer durables industry. Shares are down 78.6% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates STR Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates STR Holdings 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 STRI go as follows:

  • 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 Semiconductors & Semiconductor Equipment industry and the overall market, STR HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for STR HOLDINGS INC is currently extremely low, coming in at 5.01%. Regardless of STRI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, STRI's net profit margin of -37.97% significantly underperformed when compared to the industry average.
  • STRI'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 79.95%, 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.
  • STRI, with its decline in revenue, underperformed when compared the industry average of 10.6%. Since the same quarter one year prior, revenues fell by 26.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • STR HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to 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, STR HOLDINGS INC reported poor results of -$2.25 versus -$1.32 in the prior year. This year, the market expects an improvement in earnings (-$0.37 versus -$2.25).

You can view the full analysis from the report here: STR Holdings Ratings Report

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Leading Brands ( LBIX) was another company that pushed the Consumer Goods sector higher today. Leading Brands was up $0.10 (2.6%) to $3.88 on light volume. Throughout the day, 3,951 shares of Leading Brands exchanged hands as compared to its average daily volume of 5,300 shares. The stock ranged in a price between $3.75-$3.91 after having opened the day at $3.90 as compared to the previous trading day's close of $3.78.

Leading Brands, Inc., together with its subsidiaries, engages in the development, production, marketing, and distribution of beverages in Canada, the western United States, and Asia. Leading Brands has a market cap of $10.7 million and is part of the consumer durables industry. Shares are up 8.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Leading Brands a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Leading Brands 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 LBIX go as follows:

  • LEADING BRANDS INC 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, LEADING BRANDS INC reported lower earnings of $0.04 versus $0.36 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 Beverages industry. The net income has significantly decreased by 329.6% when compared to the same quarter one year ago, falling from $0.18 million to -$0.41 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 Beverages industry and the overall market, LEADING BRANDS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LEADING BRANDS INC is currently lower than what is desirable, coming in at 31.10%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -13.27% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.64 million or 67.44% 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: Leading Brands 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.