Newell Rubbermaid Inc (NWL): 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

Newell Rubbermaid ( NWL) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Newell Rubbermaid fell $0.29 (-1.1%) to $26.88 on average volume. Throughout the day, 2,796,351 shares of Newell Rubbermaid exchanged hands as compared to its average daily volume of 2,557,500 shares. The stock ranged in price between $26.73-$27.52 after having opened the day at $27.38 as compared to the previous trading day's close of $27.17. Other companies within the Consumer Durables industry that declined today were: SGOCO Group ( SGOC), down 14.5%, Cobra Electronics Corporation ( COBR), down 6.6%, Virco Manufacturing Corporation ( VIRC), down 3.3% and Entertainment Gaming Asia ( EGT), down 2.5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, 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

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 $7.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are up 22.0% year to date as of the close of trading on Friday. Currently there are 8 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 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 positive front, Global-Tech Advanced Innovations ( GAI), down 11.2%, iRobot Corporation ( IRBT), down 8.0%, Elecsys Corporation ( ESYS), down 4.8% and American Woodmark Corporation ( AMWD), down 4.4% , were all gainers within the consumer durables industry with Sensata Technologies Holding N.V ( ST) being today's featured consumer durables industry leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
null

If you liked this article you might like

Toys 'R' Us Bankruptcy Wreaks Some Havoc on this Baby Stroller Maker

Don't Get Shaken Out of Good Stocks: Cramer's 'Mad Money' Recap (Wed 9/13/17)

Home Depot and Lowe's Brace for Hurricane Irma Impact

Debt Ceiling Progress Boosts Stocks, but Hurricane Irma Rains on Major Rally

Debt Ceiling Progress Shores Up Market Gains, But Hurricane Irma Spoils Big Rally