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

Carter's ( CRI) pushed the Consumer Non-Durables industry higher today making it today's featured consumer non-durables winner. The industry as a whole was unchanged today. By the end of trading, Carter's rose 79 cents (1.4%) to $56.50 on average volume. Throughout the day, 653,937 shares of Carter's exchanged hands as compared to its average daily volume of 711,000 shares. The stock ranged in a price between $55.55-$56.87 after having opened the day at $55.77 as compared to the previous trading day's close of $55.71. Other companies within the Consumer Non-Durables industry that increased today were: K-Swiss ( KSWS), up 13.8%, MOD-PAC Corporation ( MPAC), up 7.4%, Ever-Glory International Group ( EVK), up 7.3%, and Tumi Holdings ( TUMI), up 5.8%.

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 $3.29 billion and is part of the consumer goods sector. The company has a P/E ratio of 26.9, equal to the average consumer non-durables industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 39.9% year to date as of the close of trading on Friday. 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.

On the negative front, Shiner International ( BEST), down 17.6%, China Shengda Packaging Group ( CPGI), down 8.1%, Coldwater Creek ( CWTR), down 7%, and Swisher Hygiene ( SWSH), down 5.1%, were all laggards within the consumer non-durables industry with Ralph Lauren ( RL) being today's consumer non-durables industry laggard.

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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