Limited Brands Inc. (LTD): 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.

Limited Brands ( LTD) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Limited Brands fell 68 cents (-1.4%) to $49.55 on average volume. Throughout the day, 2.1 million shares of Limited Brands exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in price between $49.28-$50.13 after having opened the day at $50.08 as compared to the previous trading day's close of $50.23. Other companies within the Retail industry that declined today were: China Nepstar Chain Drugstore ( NPD), down 7.2%, Christopher & Banks Corporation ( CBK), down 5.5%, Roundys ( RNDY), down 4.9%, and Bon-Ton Stores ( BONT), down 4.8%.
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Limited Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty, and personal care products and accessories primarily in the United States and Canada. Limited Brands has a market cap of $14.46 billion and is part of the services sector. The company has a P/E ratio of 21.2, equal to the average retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 24.5% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Limited Brands a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Limited Brands as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Schiff Nutrition International ( SHF), up 16.6%, Acorn International ( ATV), up 4.2%, SUPERVALU ( SVU), up 3.2%, and BioScrip ( BIOS), up 3.2%, were all gainers within the retail industry with CVS Caremark ( CVS) 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).

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