Mattel Inc. (MAT) Gains Contribute To Strong Performance

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 higher today making it today's featured consumer durables winner. The industry as a whole closed the day up 2%. By the end of trading, Mattel rose 80 cents (1.8%) to $44.06 on light volume. Throughout the day, 1.9 million shares of Mattel exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in a price between $43.40-$44.07 after having opened the day at $43.52 as compared to the previous trading day's close of $43.26. Other companies within the Consumer Durables industry that increased today were: SGOCO Group ( SGOC), up 8.7%, Fabrinet ( FN), up 7.3%, Kid Brands ( KID), up 5.1%, and Marine Products Corporation ( MPX), up 4.9%.
  • 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 $14.81 billion and is part of the consumer goods sector. The company has a P/E ratio of 19.3, above the S&P 500 P/E ratio of 17.7. Shares are up 18.1% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Mattel a buy, no analysts rate it a sell, and three 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.
null

If you liked this article you might like

This Is How to Avoid Becoming Amazon Roadkill

Cramer: How to Avoid Being Amazon Roadkill

Toys 'R' Us Is Nearing Its End These 3 Signs Reveal

Lego Posts First Sales Decline in 13 Years but Remains a Big Dog in Toyland

Dave and Busters, Hasbro, Tyson Foods: 'Mad Money' Lightning Round