Lululemon Athletica Inc. (LULU): Today's Featured Consumer Non-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.

Lululemon Athletica ( LULU) 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 0.5%. By the end of trading, Lululemon Athletica fell $0.78 (-1.1%) to $69.84 on light volume. Throughout the day, 1,862,026 shares of Lululemon Athletica exchanged hands as compared to its average daily volume of 2,805,200 shares. The stock ranged in price between $69.26-$70.83 after having opened the day at $70.70 as compared to the previous trading day's close of $70.62. Other companies within the Consumer Non-Durables industry that declined today were: Forward Industries ( FORD), down 6.1%, Ever-Glory International Group ( EVK), down 5.2%, Herbalife ( HLF), down 4.7% and Vera Bradley ( VRA), down 3.2%.

lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. It operates in three segments: Corporate-Owned Stores, Direct To Consumer, and Other. Lululemon Athletica has a market cap of $8.1 billion and is part of the consumer goods sector. The company has a P/E ratio of 38.0, above the S&P 500 P/E ratio of 17.7. Shares are down 7.4% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Lululemon Athletica a buy, 4 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Lululemon Athletica as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Tandy Brands Accessories ( TBAC), up 7.7%, Verso Paper ( VRS), up 6.9%, United-Guardian ( UG), up 4.2% and China XD Plastics ( CXDC), up 3.8% , were all gainers within the consumer non-durables industry with Procter & Gamble ( PG) 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).

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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