3 Stocks Pushing The Consumer Non-Durables Industry Lower

The Consumer Non-Durables industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.2%. Laggards within the Consumer Non-Durables industry included STR Holdings ( STRI), down 1.7%, Verso ( VRS), down 8.2%, Summer Infant ( SUMR), down 1.6%, Swisher Hygiene ( SWSH), down 11.1% and Northern Technologies International ( NTIC), down 1.8%.

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

Summer Infant ( SUMR) is one of the companies that pushed the Consumer Non-Durables industry lower today. Summer Infant was down $0.03 (1.6%) to $1.81 on light volume. Throughout the day, 2,309 shares of Summer Infant exchanged hands as compared to its average daily volume of 48,100 shares. The stock ranged in price between $1.80-$1.87 after having opened the day at $1.80 as compared to the previous trading day's close of $1.84.

Summer Infant, Inc., together with its subsidiaries, designs, markets, and distributes branded juvenile health, safety, and wellness products primarily in North America. Summer Infant has a market cap of $33.8 million and is part of the consumer goods sector. Shares are down 43.6% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Summer Infant a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Summer Infant as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from TheStreet Ratings analysis on SUMR 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 Leisure Equipment & Products industry. The net income has significantly decreased by 228.0% when compared to the same quarter one year ago, falling from $0.19 million to -$0.24 million.
  • The gross profit margin for SUMMER INFANT INC is currently lower than what is desirable, coming in at 32.59%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.45% trails that of the industry average.
  • The debt-to-equity ratio is very high at 2.07 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, SUMR's quick ratio is somewhat strong at 1.13, demonstrating the ability to handle short-term liquidity needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 49.74%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% 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.
  • 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 Leisure Equipment & Products industry and the overall market, SUMMER INFANT 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: Summer Infant Ratings Report

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At the close, Verso ( VRS) was down $0.03 (8.2%) to $0.30 on light volume. Throughout the day, 120,992 shares of Verso exchanged hands as compared to its average daily volume of 210,000 shares. The stock ranged in price between $0.29-$0.34 after having opened the day at $0.33 as compared to the previous trading day's close of $0.33.

Verso Corporation manufactures and supplies coated papers in the United States. The company offers coated groundwood paper used for catalogs and magazines; and coated freesheet paper used primarily for annual reports, brochures, and magazine covers. Verso has a market cap of $28.6 million and is part of the consumer goods sector. Shares are down 90.3% year-to-date as of the close of trading on Monday.

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

Highlights from TheStreet Ratings analysis on VRS 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 Paper & Forest Products industry. The net income has significantly decreased by 34.6% when compared to the same quarter one year ago, falling from -$90.61 million to -$122.00 million.
  • Net operating cash flow has significantly decreased to -$204.00 million or 111.87% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The gross profit margin for VERSO CORP is currently extremely low, coming in at 9.68%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, VRS's net profit margin of -15.13% significantly underperformed when compared to the industry average.
  • VRS'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 88.15%, 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.
  • VERSO CORP has improved earnings per share by 10.0% 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, VERSO CORP reported poor results of -$6.62 versus -$2.09 in the prior year.

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

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STR Holdings ( STRI) was another company that pushed the Consumer Non-Durables industry lower today. STR Holdings was down $0.02 (1.7%) to $0.89 on light volume. Throughout the day, 5,585 shares of STR Holdings exchanged hands as compared to its average daily volume of 33,700 shares. The stock ranged in price between $0.89-$1.00 after having opened the day at $1.00 as compared to the previous trading day's close of $0.91.

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 $16.1 million and is part of the consumer goods sector. Shares are down 77.9% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates STR Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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.

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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 80.05%, 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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