Newell Rubbermaid Inc (NWL): Today's Featured Consumer Durables Winner

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

Newell Rubbermaid ( NWL) pushed the Consumer Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day down 0.7%. By the end of trading, Newell Rubbermaid rose $0.49 (1.9%) to $25.84 on average volume. Throughout the day, 3,410,796 shares of Newell Rubbermaid exchanged hands as compared to its average daily volume of 2,932,200 shares. The stock ranged in a price between $25.28-$25.94 after having opened the day at $25.43 as compared to the previous trading day's close of $25.35. Other companies within the Consumer Durables industry that increased today were: SGOCO Group ( SGOC), up 5.5%, Koss Corporation ( KOSS), up 4.8%, Virco Manufacturing Corporation ( VIRC), up 4.2% and Global-Tech Advanced Innovations ( GAI), up 3.1%.
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Newell Rubbermaid Inc. designs, manufactures, and markets consumer and commercial products worldwide. It operates in six segments: Home Solutions, Writing, Tools, Commercial Products, Baby & Parenting, and Specialty. Newell Rubbermaid has a market cap of $7.4 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.9, above the S&P 500 P/E ratio of 17.7. Shares are up 13.8% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Newell Rubbermaid as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Bassett Furniture Industries ( BSET), down 9.3%, Kid Brands ( KID), down 6.8%, Flexsteel Industries ( FLXS), down 6.1% and Chromcraft Revington ( CRC), down 5.3% , were all laggards within the consumer durables industry with Pitney Bowes ( PBI) being today's consumer durables industry laggard.

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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