Mattel Inc. (MAT): Today's Featured Consumer Durables Laggard

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

Mattel ( MAT) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 1.3%. By the end of trading, Mattel fell $0.88 (-1.9%) to $44.85 on average volume. Throughout the day, 1,937,354 shares of Mattel exchanged hands as compared to its average daily volume of 2,197,600 shares. The stock ranged in price between $44.84-$45.65 after having opened the day at $45.65 as compared to the previous trading day's close of $45.73. Other companies within the Consumer Durables industry that declined today were: Chromcraft Revington ( CRC), down 7.5%, Furniture Brands International ( FBN), down 7.2%, Hasbro ( HAS), down 4.9% and Universal Electronics ( UEIC), down 4.5%.
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Mattel, Inc., together with its subsidiaries, designs, manufactures, and markets various toy products. The company operates in three segments: North America, International, and American Girl. Its products comprise fashion dolls and accessories, vehicles and play sets, and games and puzzles. Mattel has a market cap of $15.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 24.6% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Mattel a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Mattel as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Natuzzi SPA ( NTZ), down 5.3%, LJ International ( JADE), down 2.6% and VeriFone Systems ( PAY), down 1.6%.

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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