Newell Rubbermaid Inc (NWL): 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.

Newell Rubbermaid ( NWL) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 1.6%. By the end of trading, Newell Rubbermaid fell 70 cents (-3.3%) to $20.35 on average volume. Throughout the day, 3.7 million shares of Newell Rubbermaid exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in price between $20.35-$21.08 after having opened the day at $21 as compared to the previous trading day's close of $21.05. Other companies within the Consumer Durables industry that declined today were: Cobra Electronics Corporation ( COBR), down 26.9%, Mattress Firm ( MFRM), down 6.9%, Generac Holdings ( GNRC), down 6.7%, and Furniture Brands International ( FBN), down 5.7%.
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Newell Rubbermaid Inc. designs, manufactures, and markets consumer and commercial products worldwide. Newell Rubbermaid has a market cap of $6.15 billion and is part of the consumer goods sector. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 31.8% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Newell Rubbermaid a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Newell Rubbermaid as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, expanding profit margins 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.

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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