Newell Rubbermaid Inc (NWL): 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.

Newell Rubbermaid ( NWL) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Newell Rubbermaid fell 22 cents (-1.1%) to $18.87 on average volume. Throughout the day, 2.4 million shares of Newell Rubbermaid exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $18.82-$19.17 after having opened the day at $19.08 as compared to the previous trading day's close of $19.09. Other companies within the Consumer Durables industry that declined today were: SGOCO Group ( SGOC), down 8%, Koss Corporation ( KOSS), down 4.8%, Kid Brands ( KID), down 4.6%, and Jakks Pacific Incorporated ( JAKK), down 3.9%.
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Newell Rubbermaid Inc. designs, manufactures, and markets consumer and commercial products worldwide. Newell Rubbermaid has a market cap of $5.52 billion and is part of the consumer goods sector. The company has a P/E ratio of 53.1, below the average consumer durables industry P/E ratio of 61.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 18.3% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Newell Rubbermaid a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Newell Rubbermaid as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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