Beam Inc (BEAM): 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.

Beam ( BEAM) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Beam fell $1.08 (-1.9%) to $54.43 on heavy volume. Throughout the day, 1.3 million shares of Beam exchanged hands as compared to its average daily volume of 715,300 shares. The stock ranged in price between $54.22-$55.84 after having opened the day at $55.13 as compared to the previous trading day's close of $55.51. Other companies within the Consumer Durables industry that declined today were: SGOCO Group ( SGOC), down 9.3%, Generac Holdings ( GNRC), down 9.3%, Cobra Electronics Corporation ( COBR), down 5.4%, and Kid Brands ( KID), down 3%.
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Beam Inc. produces and sells branded distilled spirits products worldwide. Beam has a market cap of $8.71 billion and is part of the consumer goods sector. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are up 6.8% year to date as of the close of trading on Friday. Currently there are six analysts that rate Beam a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Beam as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Chromcraft Revington ( CRC), up 10%, Global-Tech Advanced Innovations ( GAI), up 8.3%, Blount International ( BLT), up 3.4%, and Industrie Natuzzi ( NTZ), up 3.3%, were all gainers within the consumer durables industry with VeriFone Systems ( PAY) being today's featured consumer durables industry leader.

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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