Harman International Industries Inc. (HAR): 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.

Harman International Industries ( HAR) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day up 1.1%. By the end of trading, Harman International Industries fell $4.50 (-9.1%) to $44.78 on heavy volume. Throughout the day, 6.6 million shares of Harman International Industries exchanged hands as compared to its average daily volume of 763,100 shares. The stock ranged in price between $40.48-$45.22 after having opened the day at $40.50 as compared to the previous trading day's close of $49.28. Other companies within the Consumer Durables industry that declined today were: Chromcraft Revington ( CRC), down 11.4%, Global-Tech Advanced Innovations ( GAI), down 5.8%, Koss Corporation ( KOSS), down 3.6%, and Canon ( CAJ), down 3.6%.
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Harman International Industries, Incorporated designs, develops, manufactures, and markets audio products and electronic systems worldwide. Its Infotainment segment offers infotainment systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers. Harman International Industries has a market cap of $3.37 billion and is part of the consumer goods sector. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Harman International Industries a buy, one analyst rates it a sell, and one rates it a hold.

TheStreet Ratings rates Harman International Industries as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, notable return on equity, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

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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