Ralph Lauren Corp (RL): 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.

Ralph Lauren ( RL) 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 1.8%. By the end of trading, Ralph Lauren fell $3.38 (-2.2%) to $149.13 on average volume. Throughout the day, 841,198 shares of Ralph Lauren exchanged hands as compared to its average daily volume of 840,800 shares. The stock ranged in price between $148.75-$153.79 after having opened the day at $153.50 as compared to the previous trading day's close of $152.51. Other companies within the Consumer Non-Durables industry that declined today were: China Shengda Packaging Group ( CPGI), down 16.8%, Summer Infant ( SUMR), down 15.2%, Swisher Hygiene ( SWSH), down 9.4%, and Tufco Technologies ( TFCO), down 8.7%.
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Ralph Lauren Corporation engages in the design, marketing, and distribution of lifestyle products. Ralph Lauren has a market cap of $9.21 billion and is part of the consumer goods sector. The company has a P/E ratio of 21.4, above the S&P 500 P/E ratio of 17.7. Shares are up 10% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Ralph Lauren a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Ralph Lauren as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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