Ralph Lauren Corp (RL): Today's Featured Consumer Goods 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.

Ralph Lauren ( RL) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Ralph Lauren fell $3.86 (-2.4%) to $158.99 on light volume. Throughout the day, 630,447 shares of Ralph Lauren exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $158.41-$162.62 after having opened the day at $162.26 as compared to the previous trading day's close of $162.85. Other companies within the Consumer Goods sector that declined today were: ATC Venture Group ( ATC), down 15.8%, Jones Soda Company ( JSDA), down 15.3%, HNI Corporation ( HNI), down 15.1%, and John B. Sanfilippo & Son ( JBSS), down 9.9%.
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Ralph Lauren Corporation engages in the design, marketing, and distribution of lifestyle products. Ralph Lauren has a market cap of $9.83 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 22.4, 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 17.9% year to date as of the close of trading on Monday. Currently there are four analysts that rate Ralph Lauren a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Ralph Lauren as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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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