Harman International Industries Inc. (HAR): Today's Featured Consumer Durables Laggard

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.

Harman International Industries ( HAR) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Harman International Industries fell 57 cents (-1.2%) to $47.47 on light volume. Throughout the day, 555,759 shares of Harman International Industries exchanged hands as compared to its average daily volume of 918,200 shares. The stock ranged in price between $47.40-$48.20 after having opened the day at $47.95 as compared to the previous trading day's close of $48.04. Other companies within the Consumer Durables industry that declined today were: Leapfrog ( LF), down 8.7%, Kid Brands ( KID), down 5.9%, Elecsys Corporation ( ESYS), down 3.5%, and Koninklijke Philips Electronics ( PHG), down 3.4%.

Harman International Industries, Incorporated designs, develops, manufactures, and markets audio products and electronic systems worldwide. Its Infotainment segment offers infotainment systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers. Harman International Industries has a market cap of $3.18 billion and is part of the consumer goods sector. The company has a P/E ratio of 10.4, equal to the average consumer durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 26.3% year to date as of the close of trading on Friday. Currently there are two analysts that rate Harman International Industries a buy, one analyst rates it a sell, and one rates it a hold.

TheStreet Ratings rates Harman International Industries as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Chromcraft Revington ( CRC), up 4.6%, Escalade ( ESCA), up 4%, Entertainment Gaming Asia ( EGT), up 3.7%, and Cybex International ( CYBI), up 3.5%, were all gainers within the consumer durables industry with Pitney Bowes ( PBI) being today's featured consumer durables industry leader.

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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