Ralph Lauren Corp (RL): Today's Featured Consumer Goods 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 Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Ralph Lauren fell $2.15 (-1.3%) to $160.40 on average volume. Throughout the day, 957,181 shares of Ralph Lauren exchanged hands as compared to its average daily volume of 797,800 shares. The stock ranged in price between $159.14-$162.50 after having opened the day at $162.48 as compared to the previous trading day's close of $162.55. Other companies within the Consumer Goods sector that declined today were: La-Z-Boy ( LZB), down 9.7%, Agria Corporation ( GRO), down 9.3%, Generac Holdings ( GNRC), down 5.6%, and Star Scientific ( STSI), down 5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Ralph Lauren Corporation engages in the design, marketing, and distribution of lifestyle products. Ralph Lauren has a market cap of $9.65 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 22.4, above the S&P 500 P/E ratio of 17.7. Shares are up 15.2% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Ralph Lauren a buy, no analysts rate it a sell, and seven 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, expanding profit margins 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, Coldwater Creek ( CWTR), up 17.7%, Ocean Bio-Chem ( OBCI), up 11.1%, Motorcar Parts of America ( MPAA), up 9.6%, and Exceed Company ( EDS), up 9%, were all gainers within the consumer goods sector with Goodyear Tire & Rubber ( GT) 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).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.
null

If you liked this article you might like

5 Bearish Bets: These Stocks Look Good Short

5 Bearish Bets: These Stocks Look Good Short

Do Robust Earnings for Tapestry and Michael Kors Signal a Retail Turnaround?

Do Robust Earnings for Tapestry and Michael Kors Signal a Retail Turnaround?

The Really Big Money Rushes to Super Bowl

The Really Big Money Rushes to Super Bowl

Cramer: Step Away and Get Your Clients Better Prices

Cramer: Step Away and Get Your Clients Better Prices

Who Cares About the Jobs Report? Here Are 3 Quick Reasons Stocks Could Skyrocket

Who Cares About the Jobs Report? Here Are 3 Quick Reasons Stocks Could Skyrocket