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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 0.1%. By the end of trading, Mattel fell $3.17 (-6.8%) to $43.16 on heavy volume. Throughout the day, 11,683,016 shares of Mattel exchanged hands as compared to its average daily volume of 1,849,100 shares. The stock ranged in price between $42.80-$44.45 after having opened the day at $42.80 as compared to the previous trading day's close of $46.33. Other companies within the Consumer Durables industry that declined today were: Emerson Radio ( MSN), down 9.0%, Furniture Brands International ( FBN), down 3.6%, Stanley Furniture Company ( STLY), down 3.5% and Hasbro ( HAS), down 2.4%.

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 $16.1 billion and is part of the consumer goods sector. Shares are up 26.5% year to date as of the close of trading on Tuesday. Currently there are 8 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, Global-Tech Advanced Innovations ( GAI), up 5.8%, Acme United Corporation ( ACU), up 3.5%, Leapfrog ( LF), up 2.5% and VeriFone Systems ( PAY), up 2.3%.

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.
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