CVS Caremark Corp (CVS): 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.

CVS Caremark ( CVS) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 1.1%. By the end of trading, CVS Caremark fell 61 cents (-1.3%) to $48.02 on average volume. Throughout the day, 5.9 million shares of CVS Caremark exchanged hands as compared to its average daily volume of 7.2 million shares. The stock ranged in price between $47.95-$48.76 after having opened the day at $48.51 as compared to the previous trading day's close of $48.63. Other companies within the Retail industry that declined today were: SUPERVALU ( SVU), down 11.4%, Vitacost.com ( VITC), down 6.2%, Natural Grocers by Vitamin Cottage ( NGVC), down 5.7%, and Builders FirstSource ( BLDR), down 5.3%.
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CVS Caremark Corporation provides pharmacy health care services in the United States. CVS Caremark has a market cap of $62.16 billion and is part of the services sector. The company has a P/E ratio of 17.3, below the average retail industry P/E ratio of 17.5 and below the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Monday. Currently there are 17 analysts that rate CVS Caremark a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates CVS Caremark as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, RadioShack ( RSH), up 12%, China Jo-Jo Drugstores ( CJJD), up 10.4%, Destination Maternity ( DEST), up 5.6%, and Alon Holdings Blue Square - Israel ( BSI), up 5.2%, were all gainers within the retail industry with J.C. Penney ( JCP) 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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