International Paper Co. (IP): Today's Featured Consumer Non-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.

International Paper ( IP) pushed the Consumer Non-Durables industry lower today making it today's featured Consumer Non-Durables laggard. The industry as a whole closed the day down 0.3%. By the end of trading, International Paper fell 44 cents (-1.2%) to $36.80 on light volume. Throughout the day, 3.1 million shares of International Paper exchanged hands as compared to its average daily volume of 4.4 million shares. The stock ranged in price between $36.65-$37.34 after having opened the day at $37.23 as compared to the previous trading day's close of $37.24. Other companies within the Consumer Non-Durables industry that declined today were: Forward Industries ( FORD), down 7%, China Shengda Packaging Group ( CPGI), down 6.2%, Exceed Company ( EDS), down 4.1%, and Swisher Hygiene ( SWSH), down 3.9%.
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International Paper Company operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia, and north Africa. International Paper has a market cap of $16.01 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.1, above the average consumer non-durables industry P/E ratio of 14.5 and below the S&P 500 P/E ratio of 17.7. Shares are up 25.8% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate International Paper a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates International Paper as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Frederick's of Hollywood Group ( FOH), up 14.5%, Cereplast ( CERP), up 12.8%, Sappi ( SPP), up 6.1%, and Ecolab ( ECL), up 4%, were all gainers within the consumer non-durables industry with Lululemon Athletica ( LULU) being today's featured consumer non-durables industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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