Warnaco Group Inc. (WRC): Today's Featured Consumer Non-Durables Loser

Warnaco Group ( WRC) pushed the Consumer Non-Durables industry lower today making it today's featured Consumer Non-Durables loser. The industry as a whole closed the day up 0.4%. By the end of trading, Warnaco Group fell 35 cents (-0.8%) to $42.37 on average volume. Throughout the day, 1.2 million shares of Warnaco Group exchanged hands as compared to its average daily volume of 783,300 shares. The stock ranged in price between $42.08-$43 after having opened the day at $42.58 as compared to the previous trading day's close of $42.72. Other company's within the Consumer Non-Durables industry that declined today were: Exceed Company ( EDS), down 26.6%, Quiksilver ( ZQK), down 6.2%, Coldwater Creek ( CWTR), down 5.7%, and Heelys ( HLYS), down 5.2%.

The Warnaco Group, Inc., together with its subsidiaries, designs, sources, markets, licenses, and distributes a line of intimate apparel, sportswear, and swimwear products. Warnaco Group has a market cap of $1.74 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.1, equal to the average consumer non-durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 14.6% year to date as of the close of trading on Monday. Currently there are three analysts that rate Warnaco Group a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Warnaco Group as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, China Shengda Packaging Group ( CPGI), up 7.5%, SodaStream International ( SODA), up 5.3%, Gildan Activewear Inc. Class A ( GIL), up 4.7%, and Mannatech ( MTEX), up 4.7%, were all gainers within the consumer non-durables industry with Lululemon Athletica ( LULU) being today's featured consumer non-durables industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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