3 Stocks Pushing The Specialty Retail Industry Lower

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 146 points (1.1%) at 13,259 as of Tuesday, Nov. 6, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 2,070 issues advancing vs. 801 declining with 135 unchanged.

The Specialty Retail industry currently sits up 1.2% versus the S&P 500, which is up 0.9%. A company within the industry that increased today was OfficeMax ( OMX), up 10.6%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. AutoNation ( AN) is one of the companies pushing the Specialty Retail industry lower today. As of noon trading, AutoNation is down $0.28 (-0.6%) to $43.22 on average volume Thus far, 221,832 shares of AutoNation exchanged hands as compared to its average daily volume of 562,000 shares. The stock has ranged in price between $43.13-$43.95 after having opened the day at $43.69 as compared to the previous trading day's close of $43.50.

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. AutoNation has a market cap of $5.3 billion and is part of the services sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 18.1% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates AutoNation a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates AutoNation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full AutoNation Ratings Report now.

2. As of noon trading, Francescas Holdings ( FRAN) is down $0.71 (-2.6%) to $26.83 on average volume Thus far, 451,621 shares of Francescas Holdings exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $26.52-$28.17 after having opened the day at $27.76 as compared to the previous trading day's close of $27.54.

Francesca's Holdings Corporation, through its subsidiary, Francesca's Collections, Inc., operates a chain of retail boutiques under the francesca's collections brand in the United States. Its retail boutiques offer apparel, jewelry, accessories, and gifts to female customers. Francescas Holdings has a market cap of $1.2 billion and is part of the services sector. The company has a P/E ratio of 36.2, above the S&P 500 P/E ratio of 17.7. Shares are up 61.1% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate Francescas Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Francescas Holdings as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including premium valuation and weak operating cash flow. Get the full Francescas Holdings Ratings Report now.

1. As of noon trading, Netflix ( NFLX) is down $1.51 (-1.9%) to $76.73 on light volume Thus far, 1.9 million shares of Netflix exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $75.71-$77.77 after having opened the day at $77.06 as compared to the previous trading day's close of $78.24.

Netflix, Inc. provides Internet subscription services for TV shows and movies in the United States and internationally. The company offers its subscribers to watch unlimited TV shows and movies streamed over the Internet to their TVs, computers, and mobile devices. Netflix has a market cap of $4.3 billion and is part of the services sector. The company has a P/E ratio of 97.3, above the S&P 500 P/E ratio of 17.7. Shares are up 11.0% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Netflix a buy, 8 analysts rate it a sell, and 19 rate it a hold.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Netflix Ratings Report now.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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