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.
Under Armour (
UA) 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 up 0.2%. By the end of trading, Under Armour fell 57 cents (-1.1%) to $52.16 on light volume. Throughout the day, 635,998 shares of Under Armour exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $51.89-$53.39 after having opened the day at $52.89 as compared to the previous trading day's close of $52.73. Other companies within the Consumer Non-Durables industry that declined today were:
Tandy Brands Accessories (
TBAC), down 3.7%,
Orient Paper (
ONP), down 3.2%,
Core Molding Technologies (
CMT), down 3.1%, and
Joe's Jeans (
JOEZ), down 3%.
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Under Armour, Inc. engages in the design, development, marketing, and distribution of apparel, footwear, and accessories for men, women, and youth worldwide. Under Armour has a market cap of $4.32 billion and is part of the consumer goods sector. The company has a P/E ratio of 49.4, above the S&P 500 P/E ratio of 17.7. Shares are up 44.6% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Under Armour a buy, one analyst rates it a sell, and 12 rate it a hold.
TheStreet Ratings rates Under Armour as a
buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
On the positive front,
Avon Products (
AVP), up 5.3%,
Ever-Glory International Group (
EVK), up 5.1%,
Standard Register Company (
SR), up 5.1%, and
Quiksilver (
ZQK), up 4.7%, were all gainers within the consumer non-durables industry with
Colgate-Palmolive Company (
CL) being today's featured consumer non-durables industry leader.
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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