Herbalife Ltd. (HLF): Today's Featured Consumer Goods 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.

Herbalife ( HLF) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Herbalife fell $1.73 (-2.5%) to $66.62 on light volume. Throughout the day, 2,599,727 shares of Herbalife exchanged hands as compared to its average daily volume of 3,824,700 shares. The stock ranged in price between $66.01-$68.63 after having opened the day at $68.44 as compared to the previous trading day's close of $68.35. Other companies within the Consumer Goods sector that declined today were: Mannatech ( MTEX), down 10.4%, EveryWare Global ( EVRY), down 8.4%, Rocky Brands ( RCKY), down 7.4% and Coldwater Creek ( CWTR), down 6.4%.

Herbalife Ltd., through its subsidiaries, produces and distributes weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products worldwide. Herbalife has a market cap of $6.8 billion and is part of the consumer non-durables industry. Shares are down 14.8% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Herbalife a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Herbalife as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and good cash flow from operations. 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, Jakks Pacific ( JAKK), up 23.2%, Kid Brands ( KID), up 11.7%, Cooper-Standard Holdings ( CPS), up 8.8% and China Shengda Packaging Group ( CPGI), up 8.2% , were all gainers within the consumer goods sector with Lululemon Athletica ( LULU) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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