Ralph Lauren Corp (RL): 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.

Ralph Lauren ( RL) 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 0.6%. By the end of trading, Ralph Lauren fell $4.94 (-3%) to $161.54 on heavy volume. Throughout the day, 2.1 million shares of Ralph Lauren exchanged hands as compared to its average daily volume of 815,700 shares. The stock ranged in price between $161.06-$167.20 after having opened the day at $165.79 as compared to the previous trading day's close of $166.48. Other companies within the Consumer Non-Durables industry that declined today were: China Xiniya Fashion ( XNY), down 8%, Domtar ( UFS), down 5.9%, CCA Industries ( CAW), down 4.7%, and Exceed Company ( EDS), down 4.6%.
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Ralph Lauren Corporation engages in the design, marketing, and distribution of lifestyle products. Ralph Lauren has a market cap of $10.15 billion and is part of the consumer goods sector. The company has a P/E ratio of 23.6, above the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Ralph Lauren a buy, no analysts rate it a sell, and six 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, CTI Industries Corporation ( CTIB), up 12.8%, Delta Apparel ( DLA), up 8.8%, Blyth ( BTH), up 7.7%, and Elizabeth Arden ( RDEN), up 5.4%, were all gainers within the consumer non-durables industry with Procter & Gamble ( PG) 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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