VeriFone Systems Inc. (PAY): Today's Featured Consumer Goods 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 Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.5%. By the end of trading, VeriFone Systems rose $0.25 (1.1%) to $22.30 on light volume. Throughout the day, 1,658,276 shares of VeriFone Systems exchanged hands as compared to its average daily volume of 4,258,600 shares. The stock ranged in a price between $22.00-$22.75 after having opened the day at $22.05 as compared to the previous trading day's close of $22.05. Other companies within the Consumer Goods sector that increased today were: Tandy Brands Accessories ( TBAC), up 25.4%, China New Borun Corporation ( BORN), up 16.0%, Mobile Mini ( MINI), up 13.8% and Tufco Technologies ( TFCO), up 13.1%.
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Verifone Systems, Inc. designs, markets, and services electronic payment solutions worldwide. VeriFone Systems has a market cap of $2.3 billion and is part of the consumer durables industry. The company has a P/E ratio of 29.5, above the S&P 500 P/E ratio of 17.7. Shares are down 25.7% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate VeriFone Systems a buy, 1 analyst rates it a sell, and 9 rate it a hold.

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, Central European Distribution ( CEDC), down 8.3%, Tredegar Corporation ( TG), down 6.5%, Fuwei Films (Holdings ( FFHL), down 6.0% and Omega Protein Corporation ( OME), down 6.0% , were all laggards within the consumer goods sector with Altria Group ( MO) being today's consumer goods sector laggard.

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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