VeriFone Systems Inc. (PAY): Today's Featured Consumer Durables Winner - TheStreet

VeriFone Systems

(

PAY

) pushed the Consumer Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day up 2.2%. By the end of trading, VeriFone Systems rose $1.98 (6.4%) to $33.09 on average volume. Throughout the day, 2.7 million shares of VeriFone Systems exchanged hands as compared to its average daily volume of 3.6 million shares. The stock ranged in a price between $32.01-$33.39 after having opened the day at $32.32 as compared to the previous trading day's close of $31.11. Other companies within the Consumer Durables industry that increased today were:

Fabrinet

(

FN

), up 8.9%,

Universal Electronics

(

UEIC

), up 8.7%,

Johnson Outdoors

(

JOUT

), up 7.8%, and

Fossil

(

FOSL

), up 7.6%.

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Verifone Systems, Inc. designs, markets, and services electronic payment solutions in North America and internationally. VeriFone Systems has a market cap of $3.37 billion and is part of the

consumer goods

sector. The company has a P/E ratio of 13.6, equal to the average consumer durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 12.1% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate VeriFone Systems a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates VeriFone Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer durables industry could consider

Consumer Discretionary Sel Sec SPDR

(

XLY

) while those bearish on the consumer durables industry could consider

ProShares Ultra Sht Consumer Goods

(

SZK

).

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