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 Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.7%. By the end of trading, International Paper fell 85 cents (-2.3%) to $36.78 on light volume. Throughout the day, 3.1 million shares of International Paper exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $36.70-$37.16 after having opened the day at $36.89 as compared to the previous trading day's close of $37.63. Other companies within the Consumer Goods sector that declined today were:
Autoliv (
ALV), down 10.3%,
Monster Beverage (
MNST), down 10.2%,
Quantum Fuel Systems Technologies Worldwide (
QTWW), down 10.1%, and
Tianli Agritech (
OINK), down 8.4%.
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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 $16.37 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 15.4, above the average consumer non-durables industry P/E ratio of 14.8 and below the S&P 500 P/E ratio of 17.7. Shares are up 27.1% year to date as of the close of trading on Monday. 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,
Heelys (
HLYS), up 22.2%,
Elecsys Corporation (
ESYS), up 11.3%,
Verso Paper (
VRS), up 11.2%, and
Whirlpool Corporation (
WHR), up 8.7%, were all gainers within the consumer goods sector with
Tesla Motors (
TSLA) being today's featured consumer goods sector leader.
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).
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