Consumer Durables Industry's Featured Straggler Of The Day: Mattel Inc. (MAT)

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.

Mattel ( MAT) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 1.6%. By the end of trading, Mattel fell $1.03 (-2.3%) to $42.99 on average volume. Throughout the day, 2.7 million shares of Mattel exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in price between $42.96-$44.08 after having opened the day at $44.05 as compared to the previous trading day's close of $44.02. Other companies within the Consumer Durables industry that declined today were: American Woodmark Corporation ( AMWD), down 8.2%, Flexsteel Industries ( FLXS), down 5.4%, La-Z-Boy ( LZB), down 5.2%, and SGOCO Group ( SGOC), down 4.5%.
  • 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.

Mattel, Inc., together with its subsidiaries, designs, manufactures, and markets various toy products. The company operates in three segments: North America, International, and American Girl. Its products comprise fashion dolls and accessories, vehicles and play sets, and games and puzzles. Mattel has a market cap of $15.03 billion and is part of the consumer goods sector. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are up 20.2% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Mattel a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Mattel 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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

More from Markets

Dow Skids and Stocks Fall Hard as Earnings Disappoint, Caterpillar Tumbles

Dow Skids and Stocks Fall Hard as Earnings Disappoint, Caterpillar Tumbles

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug

Video: Jim Cramer on Rising Interest Rates, Trade Worries & Caterpillar

Video: Jim Cramer on Rising Interest Rates, Trade Worries & Caterpillar