Avon Products Inc (AVP): Today's Featured Consumer Goods 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 Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Avon Products fell 43 cents (-2.5%) to $16.85 on average volume. Throughout the day, seven million shares of Avon Products exchanged hands as compared to its average daily volume of 5.4 million shares. The stock ranged in price between $16.81-$17.53 after having opened the day at $17.28 as compared to the previous trading day's close of $17.28. Other companies within the Consumer Goods sector that declined today were: Supreme Industries ( STS), down 9.5%, China New Borun Corporation ( BORN), down 8.3%, Castle Brands Incorporated ( ROX), down 6.6%, and True Religion Apparel ( TRLG), down 4.5%.
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Avon Products, Inc. manufactures and markets beauty and related products worldwide. Avon Products has a market cap of $7.49 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 64.2, above the S&P 500 P/E ratio of 17.7. Shares are up 20.8% year to date as of the close of trading on Thursday. Currently there are three analysts that rate Avon Products a buy, one analyst rates it a sell, and nine 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, Orbital Corporation ( OBT), up 7.4%, Lear Corporation ( LEA), up 6.3%, Revlon ( REV), up 5.8%, and Industrie Natuzzi ( NTZ), up 5%, were all gainers within the consumer goods sector with TRW Automotive Holdings ( TRW) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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