Cash Hoarding Consumer Stocks With Strong Expected Growth

by: ZetaKap

Interested in gaining exposure to consumer companies? Do you prefer high-growth stocks? Do you prefer companies with high liquidity? If so, here are some ideas to get you started on your search.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.

The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).

We first looked for consumer stocks. We next screened for businesses that are considered high-growth, with 1-year projected EPS growth above 25%. We next screened for businesses that have a substantial amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We did not screen out any market caps.

Do you think these stocks are undervalued and have room to trade higher? Use our screened list as a starting point for your own analysis.

1) Hooker Furniture Corp. (NASDAQ:HOFT)

Sector: Consumer Goods
Industry: Home Furnishings & Fixtures
Market Cap: $124.19M
Beta: 1.70

Hooker Furniture Corp. has a 1-Year Projected Earnings Per Share Growth Rate of 38.55% and Current Ratio of 6.99 and Quick Ratio of 4.70. The short interest was 0.15% as of 05/24/2012. Hooker Furniture Corporation, together with its subsidiaries, designs, develops, imports, and markets residential wood, metal, and upholstered furniture products in North America. The company offers wood furniture products, including home entertainment, home office, accent, dining, bedroom, and bath furniture in the upper-medium price points sold under the Hooker Furniture brand, and sold at moderate price points under the Envision Lifestyle Collections by Hooker Furniture brand. It also provides youth bedroom furniture under the Opus Designs by Hooker brand; and motion and stationary leather furniture. In addition, the company offers various residential leather and fabric upholstered furniture under the Bradington-Young and Seven Seas upholstery brand; specializes in leather reclining and motion chairs, sofas, club chairs, and executive desk chairs; and offers upscale occasional chairs and other seating under the Sam Moore upholstery brand.

2) iRobot Corporation (NASDAQ:IRBT)

Sector: Consumer Goods
Industry: Appliances
Market Cap: $578.58M
Beta: 1.21

iRobot Corporation has a 1-Year Projected Earnings Per Share Growth Rate of 31.58% and Current Ratio of 3.62 and Quick Ratio of 3.19. The short interest was 14.25% as of 05/24/2012. iRobot Corporation engages in designing, developing, and marketing robots for the consumer, government, and industrial markets worldwide. It offers consumer products, including floor vacuuming and washing robots, and pool and gutter cleaning robots. The company also provides government and industrial products, such as ground robots comprising 510 PackBot line of small unmanned ground robots; the 310 small unmanned ground vehicle (SUGV) and XM1216 SUGV multi-purpose ground robots; the 110 FirstLook small, light, and throwable robot; and the 710 Warrior multi-purpose robot that is capable of carrying heavy payloads.

3) JAKKS Pacific, Inc. (NASDAQ:JAKK)

Sector: Consumer Goods
Industry: Toys & Games
Market Cap: $467.06M
Beta: 0.69

JAKKS Pacific, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 27.36% and Current Ratio of 4.67 and Quick Ratio of 4.21. The short interest was 15.43% as of 05/24/2012. JAKKS Pacific, Inc. designs, produces, and sells toys and consumer products in the United States and internationally. It provides traditional toys and electronics products comprising action figures and accessories primarily based on Ultimate Fighting Champion, Total Non-Stop Action wrestling, and Pokmon franchises; Road Champs, Fly Wheels, and MXS toy vehicles and accessories; and electronics products under the SpyNet, EyeClops Bionic Eye, Laser Challenge, and Plug It In & Play TV Games based on Disney and other brands. The company also offers dolls and accessories, such as small, large, fashion, and baby dolls based on Disney Princess, Disney Fairies, Cabbage Patch Kids, Hello Kitty, Graco, and Fisher Price brands; private label products; pet products, which comprise toys, consumables, and accessories under the JAKKS Pets and Kong brands; and assorted pet products under the American Classics brand.

4) K-Swiss Inc. (NASDAQ:KSWS)

Sector: Consumer Goods
Industry: Textile - Apparel Footwear & Accessories
Market Cap: $100.75M
Beta: 1.13

K-Swiss Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 127.50% and Current Ratio of 4.31 and Quick Ratio of 2.41. The short interest was 16.33% as of 05/24/2012. K-Swiss Inc. designs, develops, and markets footwear, apparel, and accessories for athletic, sports, and fitness activities, as well as casual wear under the K-Swiss brand. The company also offers footwear for adventurers for various terrains under the Palladium brand. Its products include tennis and running collection apparels, such as skirts, shorts, tops, polos, dresses, and warm-ups for men and women; and casual athletic apparels consisting of jackets, sweaters, sweatshirts, track jackets, tee shirts, caps, socks, and bags.

5) Black Diamond, Inc. (NASDAQ:BDE)

Sector: Consumer Goods
Industry: Sporting Goods
Market Cap: $277.74M
Beta: 0.48

Black Diamond, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 60.00% and Current Ratio of 7.46 and Quick Ratio of 4.64. The short interest was 4.92% as of 05/24/2012. Black Diamond, Inc., together with its subsidiaries, engages in designing, manufacturing, and marketing outdoor performance products for climbing, mountaineering, backpacking, skiing, and other outdoor recreation activities in the United States and internationally. It provides climbing products, including belay/rappel devices, bouldering products, carabiners and quickdraws, chalk, chalk bags, climbing packs, crampons, crash pads, dogbones and runners, harnesses, ice axes and piolets, ice and rock protection devices, and various other climbing accessories; and skiing products comprising backpacks, winter packs for skiing and snowboarding, bindings, boots, poles, skis, skins, snow gloves, snow packs, and snow safety devices. The company also offers mountaineering line products, such as mountaineering backpacks for alpine expeditions; backpacks for backcountry excursions, overnight trips, and day hikes; and lifestyle packs, travel luggage, bivy sacks, rain sacks, gaiters, gloves, headlamps, lights, tents, trekking poles, and various other hiking and mountaineering accessories.

6) ACCO Brands Corporation (NYSE:ACCO)

Sector: Consumer Goods
Industry: Office Supplies
Market Cap: $195.38M
Beta: -

ACCO Brands Corporation has a 1-Year Projected Earnings Per Share Growth Rate of 25.50% and Current Ratio of 6.44 and Quick Ratio of 6.44. The short interest was 78.10% as of 05/24/2012. ACCO Brands Corporation engages in the design, manufacture, marketing, and distribution of office products primarily in the United States, Australia, the United Kingdom, and Canada. The company provides traditional office products and supplies, including staplers, staples, punches, ring binders, trimmers, sheet protectors, hanging file folders, clips and fasteners, dry-erase boards, dry-erase markers, easels, bulletin boards, overhead projectors, transparencies, and laser pointers and screens under the Quartet, Rexel, Swingline, Wilson Jones, Marbig, NOBO, ACCO, Derwent, and Eastlight brads. It also offers document finishing solutions comprising binding, lamination and punching equipment, binding and lamination supplies, report covers, archival report covers, and shredders, as well as machine maintenance and repair services under the GBC brand name.

7) A.T. Cross Company (NASDAQ:ATX)

Sector: Consumer Goods
Industry: Recreational Goods, Other
Market Cap: $134.86M
Beta: 1.36

A.T. Cross Company has a 1-Year Projected Earnings Per Share Growth Rate of 26.32% and Current Ratio of 3.56 and Quick Ratio of 2.11. The short interest was 3.10% as of 05/24/2012. A.T. Cross Company designs and markets branded personal and business accessories worldwide. It offers writing instruments consisting of ball-point pens, fountain pens, rolling ball pens, and mechanical pencils; refillable writing instruments; and personal and business accessories, including leather goods, reading glasses, watches, desk sets, cufflinks, and stationery under the Cross brand name. The company sells its products through direct sales force and manufacturers' agents or representatives to approximately 3,000 retail and wholesale accounts; and directly to consumers through its Website, cross.

8) Snyder's-Lance, Inc. (NASDAQ:LNCE)

Sector: Consumer Goods
Industry: Processed & Packaged Goods
Market Cap: $1.75B
Beta: 0.49

Snyder's-Lance, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 33.68% and Current Ratio of 2.77 and Quick Ratio of 2.04. The short interest was 5.57% as of 05/24/2012. Snyder's-Lance, Inc. manufactures, markets, and distributes snack food products primarily in the United States. Its products include pretzels, sandwich crackers, kettle chips, cookies, potato chips, tortilla chips, other salty snacks, sugar wafers, nuts, and restaurant style crackers. The company sells its products principally under the Snyder's of Hanover, Lance, Cape Cod, Krunchers!, Jays, Tom's, Archway, Grande, Stella D'oro, O-Ke-Doke, EatSmart, and Padrinos brand names.

*Company profiles were sourced from Finviz. Financial data was sourced from Yahoo Finance.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

About this article:

Author payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500. Become a contributor »
Problem with this article? Please tell us. Disagree with this article? .