Coinstar Inc. (CSTR): Today's Featured Specialty 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.

Coinstar ( CSTR) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole was unchanged today. By the end of trading, Coinstar rose 45 cents (1%) to $45.57 on average volume. Throughout the day, 1.1 million shares of Coinstar exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $44.99-$45.89 after having opened the day at $45.04 as compared to the previous trading day's close of $45.12. Other companies within the Specialty Retail industry that increased today were: Lentuo International ( LAS), up 20.4%, Hollywood Media Corporation ( HOLL), up 8.3%, Brown Shoe Company ( BWS), up 6.9%, and Ferrellgas Partners ( FGP), up 6%.
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Coinstar, Inc., through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom. Coinstar has a market cap of $1.35 billion and is part of the services sector. The company has a P/E ratio of 9.1, below the S&P 500 P/E ratio of 17.7. Shares are down 2% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Coinstar a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Coinstar as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, America's Car-Mart ( CRMT), down 11.2%, Birks & Mayors ( BMJ), down 10%, Mecox Lane ( MCOX), down 9.8%, and Bluefly ( BFLY), down 4.4%, were all laggards within the specialty retail industry with Signet Jewelers ( SIG) being today's specialty retail industry laggard.

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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