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 48 points (0.4%) at 12,859 as of Friday, Nov. 9, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,662 issues advancing vs. 1,212 declining with 143 unchanged.

The Specialty Retail industry currently sits up 0.1% versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the industry include Ferrellgas Partners ( FGP), down 3.7%, and AutoNation ( AN), down 0.7%. Top gainers within the industry include Office Depot ( ODP), up 2.9%, Netflix ( NFLX), up 2.0% and CarMax ( KMX), up 0.9%.

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

3. Group 1 Automotive ( GPI) is one of the companies pushing the Specialty Retail industry lower today. As of noon trading, Group 1 Automotive is down $1.50 (-2.5%) to $59.02 on average volume Thus far, 146,409 shares of Group 1 Automotive exchanged hands as compared to its average daily volume of 252,300 shares. The stock has ranged in price between $58.60-$60.48 after having opened the day at $60.48 as compared to the previous trading day's close of $60.52.

Group 1 Automotive, Inc., through its subsidiaries, engages in the marketing and sale of automotive products and services. It sells new and used cars, light trucks, and vehicle parts. Group 1 Automotive has a market cap of $1.4 billion and is part of the services sector. The company has a P/E ratio of 14.3, below the S&P 500 P/E ratio of 17.7. Shares are up 16.8% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Group 1 Automotive a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Group 1 Automotive 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, compelling growth in net income and attractive valuation levels. 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 Group 1 Automotive Ratings Report now.

2. As of noon trading, Sothebys ( BID) is down $0.85 (-2.8%) to $29.40 on heavy volume Thus far, 802,667 shares of Sothebys exchanged hands as compared to its average daily volume of 779,100 shares. The stock has ranged in price between $28.90-$30.32 after having opened the day at $29.56 as compared to the previous trading day's close of $30.25.

Sotheby's, together with its subsidiaries, operates as an auctioneer of authenticated fine and decorative art, jewelry, and collectibles in the United States, the United Kingdom, China, France, and internationally. The company operates in three segments: Auction, Finance, and Dealer. Sothebys has a market cap of $2.1 billion and is part of the services sector. The company has a P/E ratio of 18.2, above the S&P 500 P/E ratio of 17.7. Shares are up 8.4% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Sothebys a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Sothebys as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Sothebys Ratings Report now.

1. As of noon trading, PetSmart ( PETM) is down $0.50 (-0.8%) to $65.88 on light volume Thus far, 256,219 shares of PetSmart exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $65.63-$66.41 after having opened the day at $66.00 as compared to the previous trading day's close of $66.38.

PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada. PetSmart has a market cap of $7.2 billion and is part of the services sector. The company has a P/E ratio of 22.4, above the S&P 500 P/E ratio of 17.7. Shares are up 29.9% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate PetSmart a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates PetSmart as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and solid stock price performance. 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 PetSmart Ratings Report now.

If you are interested in one of these 4 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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