Nike Inc. (NKE): 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.

Nike ( NKE) 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, Nike fell 56 cents (-1.1%) to $52.40 on light volume. Throughout the day, 3.1 million shares of Nike exchanged hands as compared to its average daily volume of 4.4 million shares. The stock ranged in price between $52.19-$52.94 after having opened the day at $52.72 as compared to the previous trading day's close of $52.96. Other companies within the Consumer Non-Durables industry that declined today were: DS Healthcare Group ( DSKX), down 6.6%, Mercer International ( MERC), down 4.6%, Deckers Outdoor Corporation ( DECK), down 3.9%, and Verso Paper ( VRS), down 3.8%.
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NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of footwear, apparel, equipment, and accessories for men, women, and children worldwide. Nike has a market cap of $38.14 billion and is part of the consumer goods sector. The company has a P/E ratio of 22.4, above the S&P 500 P/E ratio of 17.7. Shares are up 2.5% year to date as of the close of trading on Monday. Currently there are six analysts that rate Nike a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Nike as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, growth in earnings per share 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, Northern Technologies International ( NTIC), up 7%, AptarGroup ( ATR), up 5.1%, United-Guardian ( UG), up 3.2%, and Tumi Holdings ( TUMI), up 2.5%, were all gainers within the consumer non-durables industry with Coach ( COH) 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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