VeriFone Systems Inc. (PAY): Today's Featured Consumer Durables Winner

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.

VeriFone Systems ( PAY) pushed the Consumer Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day up 1%. By the end of trading, VeriFone Systems rose 63 cents (1.8%) to $35 on average volume. Throughout the day, 2.1 million shares of VeriFone Systems exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in a price between $34.45-$35.24 after having opened the day at $34.46 as compared to the previous trading day's close of $34.37. Other companies within the Consumer Durables industry that increased today were: A. T. Cross Company ( ATX), up 10.9%, Global-Tech Advanced Innovations ( GAI), up 10.3%, Fabrinet ( FN), up 9.6%, and American Woodmark Corporation ( AMWD), up 8.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Verifone Systems, Inc. designs, markets, and services electronic payment solutions worldwide. VeriFone Systems has a market cap of $3.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 59.7, above the S&P 500 P/E ratio of 17.7. Shares are up 15.8% year to date as of the close of trading on Monday. Currently there are eight analysts that rate VeriFone Systems a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates VeriFone Systems 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%