VeriFone Systems Inc. (PAY): Today's Featured Consumer Durables Laggard

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 up 2.0%. By the end of trading, VeriFone Systems fell $0.86 (-4.3%) to $19.00 on average volume. Throughout the day, 4,187,288 shares of VeriFone Systems exchanged hands as compared to its average daily volume of 4,258,200 shares. The stock ranged in price between $18.86-$19.66 after having opened the day at $19.53 as compared to the previous trading day's close of $19.86. Other companies within the Consumer Durables industry that declined today were: Virco Manufacturing Corporation ( VIRC), down 12.8%, Xerox Corporation ( XRX), down 2.0% and Entertainment Gaming Asia ( EGT), down 1.7%.
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Verifone Systems, Inc. designs, markets, and services electronic payment solutions worldwide. VeriFone Systems has a market cap of $2.2 billion and is part of the consumer goods sector. The company has a P/E ratio of 27.5, above the S&P 500 P/E ratio of 17.7. Shares are down 33.1% year to date as of the close of trading on Thursday.

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, Chromcraft Revington ( CRC), down 66.7%, Bassett Furniture Industries ( BSET), down 6.5%, Brunswick Corporation ( BC), down 5.0% and Select Comfort Corporation ( SCSS), down 4.8% , were all gainers within the consumer durables industry with Sony Corporation ( SNE) 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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