Coach Inc. (COH): 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.

Coach ( COH) 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 0.1%. By the end of trading, Coach fell 57 cents (-1.2%) to $48.20 on average volume. Throughout the day, five million shares of Coach exchanged hands as compared to its average daily volume of 5.4 million shares. The stock ranged in price between $48.10-$48.68 after having opened the day at $48.45 as compared to the previous trading day's close of $48.77. Other companies within the Consumer Non-Durables industry that declined today were: Tandy Brands Accessories ( TBAC), down 31.1%, DS Healthcare Group ( DSKX), down 13.9%, Exceed Company ( EDS), down 4.8%, and United-Guardian ( UG), down 4.4%.
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Coach, Inc. engages in the design, marketing, and distribution of handbags, accessories, wearables, footwear, jewelry, sunwear, travel bags, watches, and fragrances for women and men in the United States and internationally. Coach has a market cap of $13.76 billion and is part of the consumer goods sector. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are down 11.7% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate Coach a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Coach as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and good cash flow from operations. 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 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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