Select Comfort Corporation (SCSS): Consumer Durables' Featured Daily 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.

Select Comfort Corporation ( SCSS) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole was unchanged today. By the end of trading, Select Comfort Corporation fell 64 cents (-3.1%) to $19.77 on light volume. Throughout the day, 877,807 shares of Select Comfort Corporation exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $19.55-$20.41 after having opened the day at $20.36 as compared to the previous trading day's close of $20.41. Other companies within the Consumer Durables industry that declined today were: Global-Tech Advanced Innovations ( GAI), down 20.9%, Furniture Brands International ( FBN), down 7.3%, Stanley Furniture Company ( STLY), down 3.5%, and Nautilus Group ( NLS), down 2.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Select Comfort Corporation, together with its subsidiaries, engages in the design, manufacture, marketing, distribution, and retail of adjustable-firmness mattresses and other sleep-related products in the United States and Canada. Select Comfort Corporation has a market cap of $1.06 billion and is part of the consumer goods sector. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are down 22% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Select Comfort Corporation a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Select Comfort Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Ballantyne Strong ( BTN), up 3.9%, Gaming Partners International Corporation ( GPIC), up 3.5%, Bassett Furniture Industries ( BSET), up 3.1%, and American Woodmark Corporation ( AMWD), up 3.1%, were all gainers within the consumer durables industry with Whirlpool Corporation ( WHR) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null