Aeropostale Inc. (ARO): Today's Featured Retail Loser

The retail industry closed the day up 2%. Pacific Sunwear ( PSUN), New York & Company Inc ( NWY), E-Commerce China Dangdang Inc ( DANG), and Tuesday Morning Corporation ( TUES) were all decliners today within the retail industry with Aeropostale Inc ( ARO) being today's featured retail loser. Aeropostale Inc fell 16 cents (-1.1%) to $13.98 on light volume. Throughout the day, 467,435 shares of Aeropostale Inc exchanged hands as compared to its average daily volume of 3.6 million shares.

Aeropostale, Inc. operates as a mall-based specialty retailer of casual apparel and accessories. It designs, markets, and sells merchandise principally targeting 14 to 17 year-old young women and men. Aeropostale Inc has a market cap of $1.1 billion and is part of the services sector. The company has a P/E ratio of 7.7, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 43.9% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Aeropostale as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

On the positive front, Bidz.com Inc ( BIDZ), Charming Shoppes Inc ( CHRS), Kirkland's Inc ( KIRK), and Destination Maternity ( DEST) were all gainers within the retail industry with Amazon.com Inc ( AMZN) being today's featured retail industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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