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

Coach ( COH) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 1.3%. By the end of trading, Coach fell $0.66 (-1.1%) to $57.57 on average volume. Throughout the day, 4,121,959 shares of Coach exchanged hands as compared to its average daily volume of 4,996,900 shares. The stock ranged in price between $57.29-$58.26 after having opened the day at $57.92 as compared to the previous trading day's close of $58.23. Other companies within the Consumer Goods sector that declined today were: Central European Distribution ( CEDC), down 41.8%, Federal Signal ( FSS), down 6.9%, STR Holdings ( STRI), down 6.9% and Hyster-Yale Materials Handling ( HY), down 5.7%.
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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 $16.4 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are up 5.5% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Coach a buy, no analysts rate it a sell, and 11 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 positive front, Furniture Brands International ( FBN), down 17.0%, Fuwei Films (Holdings ( FFHL), down 9.9%, Mattress Firm ( MFRM), down 5.5% and Synutra International ( SYUT), down 5.0%.

For investors not wanting singular stock exposure, 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).

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