Coach Inc. (COH): Today's Featured Consumer Non-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

Coach ( COH) pushed the Consumer Non-Durables industry higher today making it today's featured consumer non-durables winner. The industry as a whole closed the day up 0.8%. By the end of trading, Coach rose $0.85 (1.5%) to $59.23 on average volume. Throughout the day, 4,432,706 shares of Coach exchanged hands as compared to its average daily volume of 5,779,400 shares. The stock ranged in a price between $58.37-$59.23 after having opened the day at $58.51 as compared to the previous trading day's close of $58.38. Other companies within the Consumer Non-Durables industry that increased today were: Cooper Tire & Rubber Company ( CTB), up 7.4%, Goodyear Tire & Rubber ( GT), up 7.0%, Ever-Glory International Group ( EVK), up 6.2% and ACCO Brands ( ACCO), up 4.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Coach, Inc. engages in the design, marketing, and distribution of handbags, accessories, wearables, footwear, jewelry, sunwear, travel bags, watches, and fragrances for women and men in the United States and internationally. Coach has a market cap of $16.5 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.9, below the S&P 500 P/E ratio of 17.7. Shares are up 5.2% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Coach a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Coach as a buy. 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, growth in earnings per share, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Tandy Brands Accessories ( TBAC), down 9.3%, RG Barry Corporation ( DFZ), down 4.9%, Verso Paper ( VRS), down 3.4% and Orient Paper ( ONP), down 2.8% , were all laggards within the consumer non-durables industry with MeadWestvaco Corporation ( MWV) being today's consumer non-durables industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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.