Strong Performance Today In Consumer Non-Durables From Hanesbrands Inc (HBI)

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.

Hanesbrands ( HBI) pushed the Consumer Non-Durables industry higher today making it today's featured consumer non-durables winner. The industry as a whole closed the day up 0.2%. By the end of trading, Hanesbrands rose $1.14 (2.7%) to $43.88 on average volume. Throughout the day, 1.2 million shares of Hanesbrands exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $42.86-$43.93 after having opened the day at $43.01 as compared to the previous trading day's close of $42.74. Other companies within the Consumer Non-Durables industry that increased today were: CTI Industries Corporation ( CTIB), up 8.4%, Mannatech ( MTEX), up 7.3%, Summer Infant ( SUMR), up 7.1%, and Standard Register Company ( SR), up 6%.
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Hanesbrands Inc., a consumer goods company, engages in designing, manufacturing, sourcing, and selling a range of basic apparels in the United States and internationally. Hanesbrands has a market cap of $4.12 billion and is part of the consumer goods sector. The company has a P/E ratio of 18, above the S&P 500 P/E ratio of 17.7. Shares are up 17.3% year to date as of the close of trading on Friday. Currently there are six analysts that rate Hanesbrands a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Hanesbrands as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally poor debt management and poor profit margins.

On the negative front, Tandy Brands Accessories ( TBAC), down 4.3%, China Xiniya Fashion ( XNY), down 3.9%, Coldwater Creek ( CWTR), down 3.4%, and STR Holdings ( STRI), down 2.3%, were all laggards within the consumer non-durables industry with Coach ( COH) being today's consumer non-durables industry laggard.

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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