Carter's Inc. (CRI): Consumer Goods' Featured Stock Of The Day

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 higher today making it today's featured consumer goods winner. The sector as a whole closed the day down 1.3%. By the end of trading, Carter's rose $1.13 (2%) to $58.50 on heavy volume. Throughout the day, 1.4 million shares of Carter's exchanged hands as compared to its average daily volume of 745,100 shares. The stock ranged in a price between $57.24-$58.77 after having opened the day at $57.27 as compared to the previous trading day's close of $57.37. Other companies within the Consumer Goods sector that increased today were: Tandy Brands Accessories ( TBAC), up 8.7%, Fifth & Pacific Companies ( FNP), up 7.6%, China Zenix Auto International Ltd ADR ( ZX), up 6.5%, and China Xiniya Fashion ( XNY), up 5%.
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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 $3.37 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 21.1, above the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Tuesday. 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, SORL Auto Parts ( SORL), down 11.3%, Deswell Industries ( DSWL), down 8.9%, American Woodmark Corporation ( AMWD), down 8.2%, and Winnebago Industries ( WGO), down 7.8%, were all laggards within the consumer goods sector with Mondelez International ( MDLZ) being today's consumer goods sector laggard.

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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