Pitney Bowes Inc (PBI): 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.

Pitney Bowes ( PBI) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Pitney Bowes fell 18 cents (-1.3%) to $13.60 on average volume. Throughout the day, 3.6 million shares of Pitney Bowes exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in price between $13.50-$13.87 after having opened the day at $13.82 as compared to the previous trading day's close of $13.78. Other companies within the Consumer Durables industry that declined today were: Cybex International ( CYBI), down 4.3%, Appliance Recycling Centers ( ARCI), down 4.2%, Furniture Brands International ( FBN), down 3.5%, and Mad Catz Interactive ( MCZ), down 3.3%.
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Pitney Bowes Inc. provides software, hardware, and services to enable physical and digital communications. It also offers a suite of equipment, supplies, software, services, and solutions for managing and integrating physical and digital communication channels. Pitney Bowes has a market cap of $2.77 billion and is part of the consumer goods sector. The company has a P/E ratio of 6.9, above the average consumer durables industry P/E ratio of four and below the S&P 500 P/E ratio of 17.7. Shares are down 25.5% year to date as of the close of trading on Monday. Currently there is one analyst that rates Pitney Bowes a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Pitney Bowes as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, a generally disappointing performance in the stock itself and unimpressive 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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