Lowe's Companies Inc. (LOW): 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.

Lowe's Companies ( LOW) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole was unchanged today. By the end of trading, Lowe's Companies fell 43 cents (-1.4%) to $31.36 on average volume. Throughout the day, 13.4 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 13.4 million shares. The stock ranged in price between $31.17-$32.08 after having opened the day at $31.94 as compared to the previous trading day's close of $31.79. Other companies within the Retail industry that declined today were: China Jo-Jo Drugstores ( CJJD), down 6.4%, RadioShack ( RSH), down 5.3%, HHGregg Incorporated ( HGG), down 5%, and Tilly's ( TLYS), down 4.2%.
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Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer. It offers a range of products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $36.83 billion and is part of the services sector. The company has a P/E ratio of 21.2, below the average retail industry P/E ratio of 21.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 27.2% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Lowe's Companies a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Stamps.com ( STMP), up 20.2%, Overstock.com ( OSTK), up 14.7%, Amazon.com ( AMZN), up 6.9%, and Sears Holdings Corporation ( SHLD), up 6%, were all gainers within the retail industry with Target ( TGT) 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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