Ralph Lauren Corp (RL): 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.

Ralph Lauren ( RL) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Ralph Lauren fell $2.09 (-1.2%) to $174.41 on light volume. Throughout the day, 424,151 shares of Ralph Lauren exchanged hands as compared to its average daily volume of 930,100 shares. The stock ranged in price between $174.35-$176.58 after having opened the day at $175.85 as compared to the previous trading day's close of $176.50. Other companies within the Consumer Goods sector that declined today were: Diamond Foods ( DMND), down 9.7%, SGOCO Group ( SGOC), down 8.9%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 8.7%, and Orient Paper ( ONP), down 8.6%.
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Ralph Lauren Corporation engages in the design, marketing, and distribution of lifestyle products. Ralph Lauren has a market cap of $10.8 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 23.3, above the S&P 500 P/E ratio of 17.7. Shares are up 17.7% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Ralph Lauren a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Ralph Lauren 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, growth in earnings per share, increase in net income 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, Tandy Leather Factory ( TLF), up 15.7%, China Xiniya Fashion ( XNY), up 14.8%, Black Diamond ( BDE), up 7.7%, and Chromcraft Revington ( CRC), up 6.2%, were all gainers within the consumer goods sector with Smithfield Foods ( SFD) 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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