Avon Products Inc (AVP): Today's Featured Consumer Goods Winner

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.

Avon Products ( AVP) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.1%. By the end of trading, Avon Products rose $1.17 (7.2%) to $17.39 on heavy volume. Throughout the day, 13 million shares of Avon Products exchanged hands as compared to its average daily volume of 6.4 million shares. The stock ranged in a price between $16.99-$17.45 after having opened the day at $17.01 as compared to the previous trading day's close of $16.22. Other companies within the Consumer Goods sector that increased today were: Coldwater Creek ( CWTR), up 10.9%, CTI Industries Corporation ( CTIB), up 10.3%, Deswell Industries ( DSWL), up 6.9%, and Chromcraft Revington ( CRC), up 6.1%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Avon Products, Inc. manufactures and markets beauty and related products worldwide. Avon Products has a market cap of $6.92 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 27.6, 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 down 8.4% year to date as of the close of trading on Thursday. Currently there are two analysts that rate Avon Products a buy, one analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Avon Products as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

On the negative front, CCA Industries ( CAW), down 9.6%, American Apparel ( APP), down 8.4%, Appliance Recycling Centers ( ARCI), down 6.8%, and Cereplast ( CERP), down 6.7%, were all laggards within the consumer goods sector with Navistar International ( NAV) being today's consumer goods sector laggard.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Is an Avon Bottom Calling?

Avon Still Has Value But Isn't Investable, Barclays Says

Closing Bell: Another Record for Dow Stretches Streak Into Day Seven; Avon Tumbles