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.
VeriFone Systems (
PAY) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 0.5%. By the end of trading, VeriFone Systems fell 35 cents (-1.6%) to $20.86 on light volume. Throughout the day, 2.7 million shares of VeriFone Systems exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $20.75-$21.64 after having opened the day at $21.21 as compared to the previous trading day's close of $21.21. Other companies within the Consumer Durables industry that declined today were:
Furniture Brands International (
FBN), down 7.5%,
Steelcase (
SCS), down 6%,
Industrie Natuzzi (
NTZ), down 5.6%, and
SGOCO Group (
SGOC), down 3.6%.
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Verifone Systems, Inc. designs, markets, and services electronic payment solutions worldwide. VeriFone Systems has a market cap of $2.24 billion and is part of the consumer goods sector. The company has a P/E ratio of 28.3, above the S&P 500 P/E ratio of 17.7. Shares are down 28.5% year to date as of the close of trading on Monday. Currently there are five analysts that rate VeriFone Systems a buy, one analyst rates it a sell, and nine rate it a hold.
TheStreet Ratings rates VeriFone Systems as a
hold. 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 and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.
On the positive front,
Global-Tech Advanced Innovations (
GAI), up 3.5%,
Xerox Corporation (
XRX), up 2.9%,
Nautilus Group (
NLS), up 2.8%, and
Sony Corporation (
SNE), up 2.4%, were all gainers within the consumer durables industry with
Clorox Company (
CLX) 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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