Sony Corporation (SNE): Today's Featured Consumer Durables Underperformer

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.

Sony Corporation ( SNE) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Sony Corporation fell 28 cents (-1.6%) to $17.49 on light volume. Throughout the day, 2.6 million shares of Sony Corporation exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $17.35-$17.61 after having opened the day at $17.57 as compared to the previous trading day's close of $17.77. Other companies within the Consumer Durables industry that declined today were: Global-Tech Advanced Innovations ( GAI), down 6.9%, SGOCO Group ( SGOC), down 6.3%, Jakks Pacific ( JAKK), down 3.7%, and Mattress Firm ( MFRM), down 3.6%.
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Sony Corporation designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. Sony Corporation has a market cap of $17.89 billion and is part of the consumer goods sector. The company has a P/E ratio of five, below the S&P 500 P/E ratio of 17.7. Shares are up 58.7% year to date as of the close of trading on Monday. Currently there are two analysts that rate Sony Corporation a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Sony Corporation as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

On the positive front, Gaming Partners International Corporation ( GPIC), up 7%, Movado Group ( MOV), up 5.1%, Emerson Radio ( MSN), up 3.8%, and Steinway Musical Instruments ( LVB), up 3.6%, were all gainers within the consumer durables industry with Newell Rubbermaid ( NWL) being today's featured consumer durables industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer durables industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the consumer durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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