VeriFone Systems Inc. (PAY): 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

VeriFone Systems ( PAY) pushed the Consumer Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day down 0.5%. By the end of trading, VeriFone Systems rose $0.43 (2.1%) to $21.07 on light volume. Throughout the day, 2,768,590 shares of VeriFone Systems exchanged hands as compared to its average daily volume of 4,254,500 shares. The stock ranged in a price between $20.43-$21.25 after having opened the day at $20.50 as compared to the previous trading day's close of $20.64. Other companies within the Consumer Durables industry that increased today were: Pitney Bowes ( PBI), up 5.5%, Manchester United PLC Class A ( MANU), up 3.8%, Koss Corporation ( KOSS), up 3.2% and Elecsys Corporation ( ESYS), up 3.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, 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.

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 28.1, above the S&P 500 P/E ratio of 17.7. Shares are down 30.5% 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 negative front, Cobra Electronics Corporation ( COBR), down 12.7%, Leggett & Platt ( LEG), down 3.2%, Universal Electronics ( UEIC), down 3.1% and Brunswick Corporation ( BC), down 2.9% , were all laggards within the consumer durables industry with Sony Corporation ( SNE) 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).

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

Hurricane Irma, Trump and ECB - 5 Things You Must Know Before the Market Opens

Congress Is Back in Session and Tax Reform Is Top of Mind - Week Ahead

These Stocks Have Changed Direction

Amazon's Plan to Swallow Whole Foods to Foment More Destruction, More Scrutiny