Estee Lauder Cos Inc (EL): 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.

Estee Lauder Cos ( EL) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole was unchanged today. By the end of trading, Estee Lauder Cos fell 97 cents (-1.6%) to $61.78 on average volume. Throughout the day, 2.4 million shares of Estee Lauder Cos exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $61.48-$62.40 after having opened the day at $62 as compared to the previous trading day's close of $62.75. Other companies within the Consumer Goods sector that declined today were: DS Healthcare Group ( DSKX), down 9.7%, Farmer Bros ( FARM), down 5.8%, Origin Agritech ( SEED), down 5.4%, and Furniture Brands International ( FBN), down 4.8%.
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The Estee Lauder Companies Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. Estee Lauder Cos has a market cap of $14.97 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 26.9, above the S&P 500 P/E ratio of 17.7. Shares are up 5.5% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Estee Lauder Cos a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Estee Lauder Cos as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Orbital Corporation ( OBT), up 35.8%, Diamond Foods ( DMND), up 15.2%, Tianli Agritech ( OINK), up 9.5%, and Frederick's of Hollywood Group ( FOH), up 8%, were all gainers within the consumer goods sector with Deckers Outdoor Corporation ( DECK) 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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