Johnson Controls Inc (JCI): Today's Featured Consumer Goods 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

Johnson Controls ( JCI) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 1.8%. By the end of trading, Johnson Controls fell $0.52 (-1.5%) to $34.49 on light volume. Throughout the day, 2,769,623 shares of Johnson Controls exchanged hands as compared to its average daily volume of 5,107,600 shares. The stock ranged in price between $34.46-$34.99 after having opened the day at $34.86 as compared to the previous trading day's close of $35.01. Other companies within the Consumer Goods sector that declined today were: Cott ( COT), down 13.9%, Central European Distribution ( CEDC), down 10.0%, Orient Paper ( ONP), down 9.4% and Synutra International ( SYUT), down 9.1%.
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Johnson Controls, Inc. engages in building efficiency, automotive experience, and power solutions businesses worldwide. Johnson Controls has a market cap of $24.0 billion and is part of the automotive industry. The company has a P/E ratio of 26.2, above the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Johnson Controls a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Johnson Controls as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Global-Tech Advanced Innovations ( GAI), down 9.1%, Elecsys Corporation ( ESYS), down 7.6%, Le Gaga Holdings ( GAGA), down 7.1% and China Automotive Systems ( CAAS), down 6.4%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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