Newell Rubbermaid Inc (NWL): 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

Newell Rubbermaid ( NWL) pushed the Consumer Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day up 0.2%. By the end of trading, Newell Rubbermaid rose $0.31 (1.1%) to $28.21 on light volume. Throughout the day, 1,950,043 shares of Newell Rubbermaid exchanged hands as compared to its average daily volume of 2,968,100 shares. The stock ranged in a price between $27.76-$28.38 after having opened the day at $27.87 as compared to the previous trading day's close of $27.90. Other companies within the Consumer Durables industry that increased today were: Cobra Electronics Corporation ( COBR), up 5.9%, Chromcraft Revington ( CRC), up 5.3%, SGOCO Group ( SGOC), up 3.0% and iRobot Corporation ( IRBT), up 2.6%.
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Newell Rubbermaid Inc. designs, manufactures, and markets consumer and commercial products worldwide. It operates in six segments: Home Solutions, Writing, Tools, Commercial Products, Baby & Parenting, and Specialty. Newell Rubbermaid has a market cap of $7.9 billion and is part of the consumer goods sector. The company has a P/E ratio of 20.8, above the S&P 500 P/E ratio of 17.7. Shares are up 25.3% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Newell Rubbermaid a buy, no analysts rate it a sell, and 2 rate it a hold.

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

On the negative front, Apple ( AAPL), down 3.4%, VeriFone Systems ( PAY), down 2.7%, Elecsys Corporation ( ESYS), down 2.4% and Nautilus Group ( NLS), 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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