3 Stocks Pushing The Consumer Durables Industry Lower

The Consumer Durables industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.9%. Laggards within the Consumer Durables industry included Global-Tech Advanced Innovations ( GAI), down 3.0%, Vapor ( VPCO), down 5.1%, Ballantyne Strong ( BTN), down 3.4%, Marine Products ( MPX), down 3.0% and Nova Lifestyle ( NVFY), down 8.4%.

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

Marine Products ( MPX) is one of the companies that pushed the Consumer Durables industry lower today. Marine Products was down $0.22 (3.0%) to $7.22 on light volume. Throughout the day, 9,968 shares of Marine Products exchanged hands as compared to its average daily volume of 23,000 shares. The stock ranged in price between $7.16-$7.36 after having opened the day at $7.36 as compared to the previous trading day's close of $7.44.

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats for the sportboat, deckboat, cruiser, sport yacht, jet boat, and sport fishing markets worldwide. Marine Products has a market cap of $286.2 million and is part of the consumer goods sector. Shares are down 11.8% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Marine Products a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Marine Products 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, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • The revenue growth came in higher than the industry average of 1.6%. Since the same quarter one year prior, revenues rose by 24.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MPX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash problems.
  • MARINE PRODUCTS CORP 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 two years. We feel that this trend should continue. During the past fiscal year, MARINE PRODUCTS CORP increased its bottom line by earning $0.23 versus $0.19 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus $0.23).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Leisure Equipment & Products industry. The net income increased by 47.0% when compared to the same quarter one year prior, rising from $3.01 million to $4.43 million.

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

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At the close, Ballantyne Strong ( BTN) was down $0.16 (3.4%) to $4.60 on light volume. Throughout the day, 4,413 shares of Ballantyne Strong exchanged hands as compared to its average daily volume of 23,200 shares. The stock ranged in price between $4.60-$4.73 after having opened the day at $4.65 as compared to the previous trading day's close of $4.76.

Ballantyne Strong, Inc. designs, integrates, and installs technology solutions for retail, financial, government, and cinema markets worldwide. The company operates in two segments, Systems Integration and Managed Services. Ballantyne Strong has a market cap of $64.5 million and is part of the consumer goods sector. Shares are up 15.0% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Ballantyne Strong as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on BTN 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 Media industry. The net income has significantly decreased by 1611.1% when compared to the same quarter one year ago, falling from -$0.59 million to -$10.16 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 Media industry and the overall market, BALLANTYNE STRONG INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BALLANTYNE STRONG INC is rather low; currently it is at 21.50%. Regardless of BTN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, BTN's net profit margin of -45.23% significantly underperformed when compared to the industry average.
  • BALLANTYNE STRONG 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. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, BALLANTYNE STRONG INC reported lower earnings of $0.00 versus $0.01 in the prior year.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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

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Vapor ( VPCO) was another company that pushed the Consumer Durables industry lower today. Vapor was down $0.04 (5.1%) to $0.74 on average volume. Throughout the day, 155,323 shares of Vapor exchanged hands as compared to its average daily volume of 139,600 shares. The stock ranged in price between $0.73-$0.84 after having opened the day at $0.80 as compared to the previous trading day's close of $0.78.

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 $5.9 million and is part of the consumer goods sector. Shares are down 87.1% year-to-date as of the close of trading on Tuesday.

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 and generally disappointing historical performance in the stock itself.

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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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 96.22%, 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.
  • Net operating cash flow has remained constant at -$2.15 million with no significant change when compared to the same quarter last year. Despite stable cash flow, VAPOR CORP/NV's cash flow growth rate is still lower than the industry average growth rate of 40.87%.

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

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