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

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 up 0.5%. By the end of trading, Carter's rose 79 cents (1.4%) to $55.72 on light volume. Throughout the day, 397,055 shares of Carter's exchanged hands as compared to its average daily volume of 749,100 shares. The stock ranged in a price between $54.68-$56.01 after having opened the day at $54.68 as compared to the previous trading day's close of $54.93. Other companies within the Consumer Goods sector that increased today were: China Shengda Packaging Group ( CPGI), up 20.4%, Movado Group ( MOV), up 17.4%, Coldwater Creek ( CWTR), up 16.6%, and Joe's Jeans ( JOEZ), up 8.6%.

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 $3.21 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 26.3, below the average consumer non-durables industry P/E ratio of 26.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 38% year to date as of the close of trading on Monday. 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, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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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