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.
VeriFone Systems (
PAY) pushed the Consumer Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day down 0.8%. By the end of trading, VeriFone Systems rose 88 cents (2.8%) to $32.79 on average volume. Throughout the day, 3.6 million shares of VeriFone Systems exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in a price between $31.63-$32.97 after having opened the day at $31.63 as compared to the previous trading day's close of $31.91. Other companies within the Consumer Durables industry that increased today were:
Industrie Natuzzi (
NTZ), up 11%,
Flexsteel Industries (
FLXS), up 3.5%,
Cybex International (
CYBI), up 3.5%, and
Appliance Recycling Centers (
ARCI), up 2.7%.
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Verifone Systems, Inc. designs, markets, and services electronic payment solutions in North America and internationally. VeriFone Systems has a market cap of $3.42 billion and is part of the
consumer goods sector. The company has a P/E ratio of 13.4, equal to the average consumer durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 10.2% year to date as of the close of trading on Monday. Currently there are eight analysts that rate VeriFone Systems a buy, one analyst rates it a sell, and four rate it a hold.
TheStreet Ratings rates VeriFone Systems as a
buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
On the negative front,
HNI Corporation (
HNI), down 15.1%,
Virco Manufacturing Corporation (
VIRC), down 8.2%,
WMS Industries (
WMS), down 6.7%, and
Elecsys Corporation (
ESYS), down 5.5%, were all laggards within the consumer durables industry with
Pitney Bowes (
PBI) 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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