Carter's Inc. (CRI): Today's Featured Consumer Goods 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.

Carter's ( CRI) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Carter's fell 63 cents (-1.1%) to $56.99 on average volume. Throughout the day, 923,581 shares of Carter's exchanged hands as compared to its average daily volume of 742,400 shares. The stock ranged in price between $56.72-$57.33 after having opened the day at $56.99 as compared to the previous trading day's close of $57.62. Other companies within the Consumer Goods sector that declined today were: Tufco Technologies ( TFCO), down 7.7%, Mannatech ( MTEX), down 7%, Global-Tech Advanced Innovations ( GAI), down 6.9%, and Reeds ( REED), down 6.8%.
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Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded children's wear. The company provides its products under the Carter's, Child of Mine, Just One You, Precious Firsts, OshKosh, and other brands. Carter's has a market cap of $3.44 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are up 3.5% year to date as of the close of trading on Monday. Currently there are two analysts that rate Carter's a buy, no analysts rate it a sell, and three 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Standard Register Company ( SR), up 30.2%, Central European Distribution ( CEDC), up 13.6%, American Apparel ( APP), up 12.9%, and Gaming Partners International Corporation ( GPIC), up 7%, were all gainers within the consumer goods sector with Lorillard ( LO) 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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