3 Stocks Advancing The Consumer Durables Industry

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 57 points (0.3%) at 17,459 as of Thursday, Aug. 13, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,426 issues advancing vs. 1,512 declining with 179 unchanged.

The Consumer Durables industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.2%. Top gainers within the Consumer Durables industry included Appliance Recycling Centers Of America ( ARCI), up 17.1%, Koss ( KOSS), up 3.6%, Kewaunee Scientific ( KEQU), up 2.0%, SGOCO Group ( SGOC), up 6.2% and Vapor ( VPCO), up 4.0%.

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

Vapor ( VPCO) is one of the companies that pushed the Consumer Durables industry higher today. Vapor was up $0.03 (4.0%) to $0.79 on light volume. Throughout the day, 20,004 shares of Vapor exchanged hands as compared to its average daily volume of 96,100 shares. The stock ranged in a price between $0.75-$0.88 after having opened the day at $0.75 as compared to the previous trading day's close of $0.76.

Vapor Corp. designs, markets, and distributes vaporizers, e-liquids, electronic cigarettes, and accessories primarily in the United States and Canada. Vapor has a market cap of $4.9 million and is part of the consumer goods sector. Shares are down 87.4% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Vapor a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Vapor 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, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on VPCO go as follows:

  • VAPOR CORP/NV 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, VAPOR CORP/NV swung to a loss, reporting -$4.15 versus $0.15 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 Tobacco industry. The net income has significantly decreased by 174.0% when compared to the same quarter one year ago, falling from -$1.45 million to -$3.98 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 Tobacco industry and the overall market, VAPOR CORP/NV's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has remained constant at -$2.15 million with no significant change when compared to the same quarter last year. Even though there was no significant change, VAPOR CORP/NV's cash flow growth rate is severely below the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 96.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% 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.

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

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At the close, Kewaunee Scientific ( KEQU) was up $0.33 (2.0%) to $17.30 on average volume. Throughout the day, 1,927 shares of Kewaunee Scientific exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in a price between $17.29-$17.30 after having opened the day at $17.29 as compared to the previous trading day's close of $16.97.

Kewaunee Scientific Corporation designs, manufactures, and installs laboratory, healthcare, and technical furniture products in the Americas and internationally. Kewaunee Scientific has a market cap of $44.7 million and is part of the consumer goods sector. Shares are down 4.7% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Kewaunee Scientific a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Kewaunee Scientific as a buy. 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 reasonable valuation levels. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on KEQU go as follows:

  • KEQU's revenue growth trails the industry average of 29.9%. Since the same quarter one year prior, revenues rose by 11.9%. 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.
  • KEQU's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, KEQU has a quick ratio of 1.64, which demonstrates the ability of the company to cover short-term liquidity needs.
  • In its most recent trading session, KEQU has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • KEWAUNEE SCIENTIFIC CORP's earnings per share declined by 37.8% 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, KEWAUNEE SCIENTIFIC CORP reported lower earnings of $1.33 versus $1.48 in the prior year.

You can view the full analysis from the report here: Kewaunee Scientific Ratings Report

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Appliance Recycling Centers Of America ( ARCI) was another company that pushed the Consumer Durables industry higher today. Appliance Recycling Centers Of America was up $0.20 (17.1%) to $1.37 on heavy volume. Throughout the day, 33,478 shares of Appliance Recycling Centers Of America exchanged hands as compared to its average daily volume of 8,500 shares. The stock ranged in a price between $1.35-$1.56 after having opened the day at $1.42 as compared to the previous trading day's close of $1.17.

Appliance Recycling Centers of America, Inc., together with its subsidiaries, sells and recycles new household appliances through a chain of company-owned retail stores under the ApplianceSmart name. The company operates in two segments, Recycling and Retail. Appliance Recycling Centers Of America has a market cap of $7.9 million and is part of the consumer goods sector. Shares are down 57.5% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Appliance Recycling Centers Of America a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Appliance Recycling Centers Of America 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, generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on ARCI go as follows:

  • The debt-to-equity ratio of 1.23 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, ARCI has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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 Specialty Retail industry and the overall market, APPLIANCE RECYCLING CTR AMER's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for APPLIANCE RECYCLING CTR AMER is rather low; currently it is at 22.51%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.17% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $1.07 million or 59.30% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • APPLIANCE RECYCLING CTR AMER 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, APPLIANCE RECYCLING CTR AMER reported lower earnings of $0.12 versus $0.57 in the prior year.

You can view the full analysis from the report here: Appliance Recycling Centers Of America 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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