Abercrombie & Fitch Co. (ANF): 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.

Abercrombie & Fitch ( ANF) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Abercrombie & Fitch fell 48 cents (-1.4%) to $33.92 on light volume. Throughout the day, 1.9 million shares of Abercrombie & Fitch exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in price between $33.84-$34.26 after having opened the day at $34.21 as compared to the previous trading day's close of $34.40. Other companies within the Retail industry that declined today were: ALCO Stores ( ALCS), down 9.1%, Cache ( CACH), down 4.5%, Roundys ( RNDY), down 4.1%, and HHGregg Incorporated ( HGG), down 3.4%.
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Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. Abercrombie & Fitch has a market cap of $2.87 billion and is part of the services sector. The company has a P/E ratio of 32.4, below the average retail industry P/E ratio of 34 and above the S&P 500 P/E ratio of 17.7. Shares are down 29% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Abercrombie & Fitch a buy, no analysts rate it a sell, and 19 rate it a hold.

TheStreet Ratings rates Abercrombie & Fitch as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

On the positive front, Orchard Supply Hardware ( OSH), up 6.8%, Christopher & Banks Corporation ( CBK), up 6%, QKL Stores ( QKLS), up 5.6%, and GNC Acquisition Holdings ( GNC), up 5.3%, were all gainers within the retail industry with Gap ( GPS) 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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