Avon Products Inc (AVP): 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.

Avon Products ( AVP) 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 0.1%. By the end of trading, Avon Products fell 31 cents (-2.2%) to $14.07 on average volume. Throughout the day, 4.6 million shares of Avon Products exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in price between $14-$14.39 after having opened the day at $14.34 as compared to the previous trading day's close of $14.38. Other companies within the Consumer Non-Durables industry that declined today were: Quiksilver ( ZQK), down 13%, Summer Infant ( SUMR), down 4.8%, G-III Apparel Group ( GIII), down 3.9%, and Crown Crafts ( CRWS), down 3.8%.
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Avon Products, Inc. manufactures and markets beauty and related products worldwide. Avon Products has a market cap of $6.19 billion and is part of the consumer goods sector. The company has a P/E ratio of 53.1, above the S&P 500 P/E ratio of 17.7. Shares are down 18% year to date as of the close of trading on Thursday. Currently there are two analysts that rate Avon Products a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Avon Products as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

On the positive front, Exceed Company ( EDS), up 8%, China Xiniya Fashion ( XNY), up 6.6%, Forward Industries ( FORD), up 6.1%, and STR Holdings ( STRI), up 6%, were all gainers within the consumer non-durables industry with International Paper ( IP) 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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