Mattel Inc. (MAT): 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.

Mattel ( MAT) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 1.4%. By the end of trading, Mattel fell 59 cents (-1.6%) to $35.36 on light volume. Throughout the day, 1.7 million shares of Mattel exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $35.26-$36.03 after having opened the day at $36.01 as compared to the previous trading day's close of $35.95. Other companies within the Consumer Durables industry that declined today were: Furniture Brands International ( FBN), down 11.4%, Chromcraft Revington ( CRC), down 9.4%, Fabrinet ( FN), down 8.8%, and Escalade ( ESCA), down 5.6%.
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Mattel, Inc., together with its subsidiaries, designs, manufactures, and markets various toy products. Its products comprise fashion dolls and accessories, vehicles and play sets, and games and puzzles. Mattel has a market cap of $12.25 billion and is part of the consumer goods sector. The company has a P/E ratio of 16.3, equal to the average consumer durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 29.5% year to date as of the close of trading on Monday. Currently there are eight analysts that rate Mattel a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Mattel as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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