Big Lots Inc. (BIG): Today's Featured Retail 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.

Big Lots ( BIG) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Big Lots fell 67 cents (-2.1%) to $30.43 on average volume. Throughout the day, one million shares of Big Lots exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $30.42-$31.19 after having opened the day at $31.18 as compared to the previous trading day's close of $31.10. Other companies within the Retail industry that declined today were: Fresh Market ( TFM), down 5.7%, Stamps.com ( STMP), down 5.1%, China Jo-Jo Drugstores ( CJJD), down 5%, and Tilly's ( TLYS), down 3.1%.

Big Lots, Inc., through its subsidiaries, operates as a broadline closeout retailer in the United States and Canada. Big Lots has a market cap of $1.95 billion and is part of the services sector. The company has a P/E ratio of 10.8, above the average retail industry P/E ratio of 10.7 and below the S&P 500 P/E ratio of 17.7. Shares are down 17.6% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Big Lots a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Big Lots as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, 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 sub par growth in net income.

On the positive front, QKL Stores ( QKLS), up 19.7%, Jos A. Bank Clothiers ( JOSB), up 14%, Vitacost.com ( VITC), up 5.2%, and Builders FirstSource ( BLDR), up 5.1%, were all gainers within the retail industry with eBay ( EBAY) being today's featured retail industry leader.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Hurricane Harvey Isn't the Bruising Storm That Wall Street Hates: Market Recon

Big Lots Should Have a Good Quarter, Jim Cramer Explains

A Measured Fed and Retail Relief Rally Give Wall Street a Small Lift

Stocks Inch Higher as Fed Signals September as Start of Balance Sheet Reduction