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 up 0.8%. By the end of trading, VeriFone Systems rose $0.45 (1.9%) to $23.64 on light volume. Throughout the day, 1,577,677 shares of VeriFone Systems exchanged hands as compared to its average daily volume of 4,189,000 shares. The stock ranged in a price between $23.15-$23.78 after having opened the day at $23.16 as compared to the previous trading day's close of $23.19. Other companies within the Consumer Durables industry that increased today were: Sony Corporation ( SNE), up 9.9%, Kid Brands ( KID), up 7.1%, Movado Group ( MOV), up 6.7% and iRobot Corporation ( IRBT), up 4.0%.
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Verifone Systems, Inc. designs, markets, and services electronic payment solutions worldwide. VeriFone Systems has a market cap of $2.5 billion and is part of the consumer goods sector. The company has a P/E ratio of 31.6, above the S&P 500 P/E ratio of 17.7. Shares are down 21.9% year to date as of the close of trading on Monday. 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, Entertainment Gaming Asia ( EGT), down 5.0%, SGOCO Group ( SGOC), down 2.9%, Appliance Recycling Centers Of America ( ARCI), down 2.5% and Apple ( AAPL), down 2.4%.

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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