VeriFone Systems Inc. (PAY): 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.

VeriFone Systems ( PAY) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 0.7%. By the end of trading, VeriFone Systems fell 84 cents (-2.7%) to $30.65 on light volume. Throughout the day, 2.4 million shares of VeriFone Systems exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in price between $29.90-$31.07 after having opened the day at $31.05 as compared to the previous trading day's close of $31.49. Other companies within the Consumer Durables industry that declined today were: SGOCO Group ( SGOC), down 5.9%, Xerox Corporation ( XRX), down 5.1%, Appliance Recycling Centers ( ARCI), down 4.7%, and Tempur-Pedic International ( TPX), down 4.6%.
  • 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.

Verifone Systems, Inc. designs, markets, and services electronic payment solutions in North America and internationally. VeriFone Systems has a market cap of $3.42 billion and is part of the consumer goods sector. The company has a P/E ratio of 13.4, equal to the average consumer durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 11.3% year to date as of the close of trading on Monday. Currently there are eight analysts that rate VeriFone Systems a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates VeriFone Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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).

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

Hurricane Irma, Trump and ECB - 5 Things You Must Know Before the Market Opens

Congress Is Back in Session and Tax Reform Is Top of Mind - Week Ahead

These Stocks Have Changed Direction

Amazon's Plan to Swallow Whole Foods to Foment More Destruction, More Scrutiny