Carter's Inc. (CRI): Today's Featured Consumer Goods Winner

Carter's ( CRI) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day down 0.8%. By the end of trading, Carter's rose 47 cents (0.9%) to $50.11 on average volume. Throughout the day, 868,229 shares of Carter's exchanged hands as compared to its average daily volume of 831,300 shares. The stock ranged in a price between $48.67-$50.24 after having opened the day at $49.22 as compared to the previous trading day's close of $49.64. Other companies within the Consumer Goods sector that increased today were: Green Mountain Coffee Roasters ( GMCR), up 26.5%, Smart Balance ( SMBL), up 12%, Cereplast ( CERP), up 11.3%, and Kimball International Inc. Class B ( KBALB), up 9.2%.

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded children's wear. The company provides products under the Carter's, Child of Mine, Just One You, Precious Firsts, OshKosh, and related brand names. Carter's has a market cap of $2.99 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 24.5, below the average consumer non-durables industry P/E ratio of 24.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 27.3% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Carter's a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Carter's as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Central European Distribution ( CEDC), down 21.3%, Sealed Air Corporation ( SEE), down 16.8%, Inventure Foods ( SNAK), down 15.4%, and Navistar International ( NAV), down 13.4%, were all laggards within the consumer goods sector with Kraft Foods ( KFT) being today's consumer goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).
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