Tiffany & Co. (TIF): 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.

Tiffany ( TIF) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day down 1.1%. By the end of trading, Tiffany fell 86 cents (-1.4%) to $62.11 on light volume. Throughout the day, 979,869 shares of Tiffany exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $61.94-$63.25 after having opened the day at $62.96 as compared to the previous trading day's close of $62.97. Other companies within the Specialty Retail industry that declined today were: Netflix ( NFLX), down 10.9%, iParty Corporation ( IPT), down 9.5%, Sothebys ( BID), down 5.3%, and Zale Corporation ( ZLC), down 5.3%.
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Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. Tiffany has a market cap of $7.98 billion and is part of the services sector. The company has a P/E ratio of 18.3, equal to the average specialty retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 5% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Tiffany a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Tiffany as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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