Carter's Inc. (CRI): 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.

Carter's ( CRI) 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 0.7%. By the end of trading, Carter's fell $3.34 (-5.7%) to $55.55 on heavy volume. Throughout the day, 3.9 million shares of Carter's exchanged hands as compared to its average daily volume of 678,100 shares. The stock ranged in price between $55.38-$57.75 after having opened the day at $56.40 as compared to the previous trading day's close of $58.89. Other companies within the Consumer Non-Durables industry that declined today were: Tandy Brands Accessories ( TBAC), down 6.1%, Ocean Bio-Chem ( OBCI), down 5.2%, CCA Industries ( CAW), down 3%, and DS Healthcare Group ( DSKX), down 1.7%.
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Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded children's wear. The company provides products under the Carter's, Child of Mine, Just One You, Precious Firsts, OshKosh, and related brand names. Carter's has a market cap of $3.41 billion and is part of the consumer goods sector. The company has a P/E ratio of 23.4, above the S&P 500 P/E ratio of 17.7. Shares are up 3.9% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate Carter's a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Carter's as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Quiksilver ( ZQK), up 4.5%, Standard Register Company ( SR), up 4.2%, Tumi Holdings ( TUMI), up 3.7%, and AEP Industries ( AEPI), up 3.5%, were all gainers within the consumer non-durables industry with Kimberly-Clark Corporation ( KMB) 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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