International Paper Co. (IP): Today's Featured Consumer Non-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

International Paper ( IP) pushed the Consumer Non-Durables industry lower today making it today's featured Consumer Non-Durables laggard. The industry as a whole closed the day up 0.7%. By the end of trading, International Paper fell $0.66 (-1.5%) to $43.60 on heavy volume. Throughout the day, 5,784,610 shares of International Paper exchanged hands as compared to its average daily volume of 3,796,900 shares. The stock ranged in price between $42.50-$44.90 after having opened the day at $44.90 as compared to the previous trading day's close of $44.26. Other companies within the Consumer Non-Durables industry that declined today were: 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%.
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International Paper Company operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia, and North Africa. International Paper has a market cap of $20.4 billion and is part of the consumer goods sector. The company has a P/E ratio of 23.7, above the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate International Paper a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates International Paper as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Tufco Technologies ( TFCO), down 15.3%, Coldwater Creek ( CWTR), down 12.1%, DS Healthcare Group ( DSKX), down 11.2% and STR Holdings ( STRI), down 10.4% , were all gainers within the consumer non-durables industry with Carter's ( CRI) being today's featured consumer non-durables industry leader.

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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