4 Consumer Goods Stocks Dragging The Sector Down

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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 60 points (0.4%) at 15,029 as of Tuesday, May 7, 2013, 12:54 PM ET. The NYSE advances/declines ratio sits at 1,907 issues advancing vs. 994 declining with 159 unchanged.

The Consumer Goods sector currently sits up 0.3% versus the S&P 500, which is up 0.3%. A company within the sector that fell today was Tesla Motors ( TSLA), up 3.78. Top gainers within the sector include Sony Corporation ( SNE), up 2.6%, General Mills ( GIS), up 2.0%, Coca-Cola Femsa S.A.B. de C.V ( KOF), up 2.0%, Toyota Motor ( TM), up 1.2% and Altria Group ( MO), up 1.1%.

TheStreet Ratings group would like to highlight 4 stocks pushing the sector lower today:

4. Royal Philips Electronics ( PHG) is one of the companies pushing the Consumer Goods sector lower today. As of noon trading, Royal Philips Electronics is down $0.55 (-2.0%) to $26.73 on average volume Thus far, 378,535 shares of Royal Philips Electronics exchanged hands as compared to its average daily volume of 773,000 shares. The stock has ranged in price between $26.65-$26.96 after having opened the day at $26.93 as compared to the previous trading day's close of $27.28.

Koninklijke Philips Electronics N.V. engages in the healthcare, lighting, and consumer lifestyle businesses worldwide. Royal Philips Electronics has a market cap of $25.6 billion and is part of the industrial industry. The company has a P/E ratio of 76.4, above the S&P 500 P/E ratio of 17.7. Shares are up 6.5% year to date as of the close of trading on Monday.

TheStreet Ratings rates Royal Philips Electronics as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Royal Philips Electronics Ratings Report now.

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3. As of noon trading, Canon ( CAJ) is down $0.39 (-1.1%) to $35.36 on light volume Thus far, 101,202 shares of Canon exchanged hands as compared to its average daily volume of 614,300 shares. The stock has ranged in price between $35.26-$35.44 after having opened the day at $35.29 as compared to the previous trading day's close of $35.75.

Canon Inc. engages in the manufacture and sale of office multifunction devices (MFDs), plain paper copying machines, laser printers, inkjet printers, cameras, and lithography equipment worldwide. Canon has a market cap of $41.2 billion and is part of the consumer durables industry. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are down 8.8% year to date as of the close of trading on Monday.

TheStreet Ratings rates Canon as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and disappointing return on equity. Get the full Canon Ratings Report now.

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2. As of noon trading, Molson Coors Brewing Company ( TAP) is down $1.48 (-2.9%) to $49.49 on heavy volume Thus far, 1.5 million shares of Molson Coors Brewing Company exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $48.85-$50.59 after having opened the day at $49.86 as compared to the previous trading day's close of $50.97.

Molson Coors Brewing Company manufactures and sells beer and other beverage products. Molson Coors Brewing Company has a market cap of $8.1 billion and is part of the food & beverage industry. The company has a P/E ratio of 21.1, above the S&P 500 P/E ratio of 17.7. Shares are up 19.1% year to date as of the close of trading on Monday.

TheStreet Ratings rates Molson Coors Brewing Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Molson Coors Brewing Company Ratings Report now.

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.

1. As of noon trading, General Motors ( GM) is down $0.24 (-0.7%) to $31.58 on average volume Thus far, 5.7 million shares of General Motors exchanged hands as compared to its average daily volume of 11.1 million shares. The stock has ranged in price between $31.46-$32.13 after having opened the day at $31.92 as compared to the previous trading day's close of $31.82.

General Motors Company (GM) designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. General Motors has a market cap of $44.1 billion and is part of the automotive industry. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are up 10.4% year to date as of the close of trading on Monday.

TheStreet Ratings rates General Motors as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full General Motors Ratings Report now.

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.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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