Aeropostale Inc. (ARO): Today's Featured Retail Winner

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.

Aeropostale ( ARO) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day down 1.5%. By the end of trading, Aeropostale rose 20 cents (1.5%) to $13.19 on average volume. Throughout the day, 3.2 million shares of Aeropostale exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $12.86-$13.29 after having opened the day at $12.93 as compared to the previous trading day's close of $12.99. Other companies within the Retail industry that increased today were: SUPERVALU ( SVU), up 2.3% and Cherokee ( CHKE), up 1.5%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Aeropostale, Inc., together with its subsidiaries, operates as a mall-based specialty retailer of casual apparel and accessories. Aeropostale has a market cap of $1.03 billion and is part of the services sector. The company has a P/E ratio of 16.9, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 14.8% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Aeropostale a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Aeropostale as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and relatively poor performance when compared with the S&P 500 during the past year.

On the negative front, PC Connection ( PCCC), down 7.1%, Guess ( GES), down 6.2%, Pacific Sunwear ( PSUN), down 5.5%, and ALCO Stores ( ALCS), down 5.5%, were all laggards within the retail industry with TJX Companies ( TJX) being today's retail industry laggard.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.

null

More from Markets

Dow Sinks for Eighth Straight Session; Intel's CEO Departs -- ICYMI

Dow Sinks for Eighth Straight Session; Intel's CEO Departs -- ICYMI

Dow Logs Eighth Straight Drop as Stocks Slump

Dow Logs Eighth Straight Drop as Stocks Slump

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

U.S. Banks Pass Fed 'Stress Test' With Room for Dividends, Buybacks

U.S. Banks Pass Fed 'Stress Test' With Room for Dividends, Buybacks

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins