Carter's Inc. (CRI): 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

Carter's ( CRI) 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 0.7%. By the end of trading, Carter's rose $1.40 (1.9%) to $73.15 on heavy volume. Throughout the day, 1,717,229 shares of Carter's exchanged hands as compared to its average daily volume of 798,400 shares. The stock ranged in a price between $71.37-$73.73 after having opened the day at $72.67 as compared to the previous trading day's close of $71.75. Other companies within the Consumer Non-Durables industry that increased today were: Tufco Technologies ( TFCO), up 15.3%, Coldwater Creek ( CWTR), up 12.1%, DS Healthcare Group ( DSKX), up 11.2% and STR Holdings ( STRI), up 10.4%.
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Carter’s, Inc., together with its subsidiaries, designs, sources, and markets branded children’s wear. The company provides its products under the Carter’s, Child of Mine, Just One You, Precious Firsts, OshKosh, and other brands. Carter's has a market cap of $4.3 billion and is part of the consumer goods sector. The company has a P/E ratio of 25.8, above the S&P 500 P/E ratio of 17.7. Shares are up 28.9% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Carter's a buy, no analysts rate it a sell, and 3 rate it a hold.

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

On the negative front, Mannatech ( MTEX), down 4.2%, Fifth & Pacific Companies ( FNP), down 4.1%, Deckers Outdoor Corporation ( DECK), down 3.8% and Mercer International ( MERC), down 3.5% , were all laggards within the consumer non-durables industry with International Paper ( IP) 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).

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