3 Stocks Advancing The Consumer Non-Durables Industry

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 164.34 points (-0.9%) at 17,347 as of Wednesday, Aug. 19, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 562 issues advancing vs. 2,422 declining with 143 unchanged.

The Consumer Non-Durables industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.9%. Top gainers within the Consumer Non-Durables industry included Ocean Bio-Chem ( OBCI), up 2.6%, STR Holdings ( STRI), up 4.3%, Verso ( VRS), up 8.2%, Swisher Hygiene ( SWSH), up 3.1% and Delta Apparel ( DLA), up 2.5%.

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

Swisher Hygiene ( SWSH) is one of the companies that pushed the Consumer Non-Durables industry higher today. Swisher Hygiene was up $0.04 (3.1%) to $1.32 on light volume. Throughout the day, 51,092 shares of Swisher Hygiene exchanged hands as compared to its average daily volume of 70,900 shares. The stock ranged in a price between $1.19-$1.35 after having opened the day at $1.35 as compared to the previous trading day's close of $1.28.

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 $25.4 million and is part of the consumer goods sector. Shares are down 31.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Swisher Hygiene a buy, no analysts rate it a sell, and 1 rates it a hold.

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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 70.66%, 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 5.3%. 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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At the close, Verso ( VRS) was up $0.02 (8.2%) to $0.33 on light volume. Throughout the day, 64,186 shares of Verso exchanged hands as compared to its average daily volume of 207,700 shares. The stock ranged in a price between $0.31-$0.37 after having opened the day at $0.37 as compared to the previous trading day's close of $0.30.

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 $27.2 million and is part of the consumer goods sector. Shares are down 91.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Verso a buy, no analysts rate it a sell, and none rate it a hold.

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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 higher today. STR Holdings was up $0.04 (4.3%) to $0.93 on light volume. Throughout the day, 5,416 shares of STR Holdings exchanged hands as compared to its average daily volume of 31,300 shares. The stock ranged in a price between $0.91-$0.93 after having opened the day at $0.92 as compared to the previous trading day's close of $0.89.

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 $16.4 million and is part of the consumer goods sector. Shares are down 78.3% 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.

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 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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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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