Sally Beauty Holdings Inc (SBH): Today's Featured Specialty 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.

Sally Beauty Holdings ( SBH) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Sally Beauty Holdings fell 70 cents (-2.5%) to $27.29 on heavy volume. Throughout the day, four million shares of Sally Beauty Holdings exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $27.11-$27.50 after having opened the day at $27.35 as compared to the previous trading day's close of $27.99. Other companies within the Specialty Retail industry that declined today were: Francescas Holdings ( FRAN), down 6.9%, Birks & Mayors ( BMJ), down 6.5%, Barnes & Noble ( BKS), down 3.7%, and Rush ( RUSHB), down 2.1%.

Sally Beauty Holdings, Inc., through its subsidiaries, engages in the distribution and retail of professional beauty supplies primarily in North America, South America, and Europe. The company operates in two segments, Sally Beauty Supply and Beauty Systems Group. Sally Beauty Holdings has a market cap of $4.96 billion and is part of the services sector. The company has a P/E ratio of 19.8, below the average specialty retail industry P/E ratio of 23.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 32.5% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Sally Beauty Holdings a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Sally Beauty Holdings as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

On the positive front, iParty Corporation ( IPT), up 22.2%, Titan Machinery ( TITN), up 6.8%, Sothebys ( BID), up 6.4%, and MarineMax ( HZO), up 6%, were all gainers within the specialty retail industry with Staples ( SPLS) being today's featured specialty retail industry leader.

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

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