Leggett & Platt Inc. (LEG): Today's Featured Consumer Durables Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Leggett & Platt ( LEG) pushed the Consumer Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day up 0.2%. By the end of trading, Leggett & Platt rose 33 cents (1.4%) to $23.89 on light volume. Throughout the day, 1.1 million shares of Leggett & Platt exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $23.45-$23.99 after having opened the day at $23.56 as compared to the previous trading day's close of $23.56. Other companies within the Consumer Durables industry that increased today were: Cybex International ( CYBI), up 4.8%, Cascade Microtech ( CSCD), up 3.6%, Movado Group ( MOV), up 3.6%, and Bassett Furniture Industries ( BSET), up 3.5%.

Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. Leggett & Platt has a market cap of $3.27 billion and is part of the consumer goods sector. The company has a P/E ratio of 21.4, above the average consumer durables industry P/E ratio of 20.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 2.3% year to date as of the close of trading on Thursday. Currently there are three analysts that rate Leggett & Platt a buy, no analysts rate it a sell, and three rate it a hold.

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

On the negative front, Virco Manufacturing Corporation ( VIRC), down 7.9%, Callaway Golf Company ( ELY), down 6.6%, Mad Catz Interactive ( MCZ), down 3.7%, and Nautilus Group ( NLS), down 3.7%, were all laggards within the consumer durables industry with Select Comfort Corporation ( SCSS) being today's consumer durables industry laggard.

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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