Estee Lauder Cos Inc (EL): 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.

Estee Lauder Cos ( EL) 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, Estee Lauder Cos fell 81 cents (-1.2%) to $65.02 on light volume. Throughout the day, 1.4 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 $64.58-$65.89 after having opened the day at $65.81 as compared to the previous trading day's close of $65.83. Other companies within the Consumer Non-Durables industry that declined today were: Inter Parfums ( IPAR), down 5.3%, CTI Industries Corporation ( CTIB), down 5.2%, Standard Register Company ( SR), down 5%, and Exceed Company ( EDS), down 3.5%.
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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 $15.59 billion and is part of the consumer goods sector. The company has a P/E ratio of 28, above the S&P 500 P/E ratio of 17.7. Shares are up 9.8% year to date as of the close of trading on Tuesday. 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Summer Infant ( SUMR), up 10.3%, Verso Paper ( VRS), up 8.8%, Joe's Jeans ( JOEZ), up 7.3%, and Tandy Brands Accessories ( TBAC), up 7.3%, were all gainers within the consumer non-durables industry with Goodyear Tire & Rubber ( GT) 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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