Staples Inc. (SPLS): 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.

Staples ( SPLS) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole closed the day down 0.2%. By the end of trading, Staples rose 15 cents (1.1%) to $13.15 on heavy volume. Throughout the day, 18.5 million shares of Staples exchanged hands as compared to its average daily volume of 11.2 million shares. The stock ranged in a price between $12.90-$13.25 after having opened the day at $13 as compared to the previous trading day's close of $13. Other companies within the Specialty Retail industry that increased today were: Perfumania Holdings ( PERF), up 8.3%, MarineMax ( HZO), up 4.3%, TravelCenters of America ( TA), up 2.9%, and Winmark Corporation ( WINA), up 2.8%.
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Staples, Inc., together with its subsidiaries, operates as an office products company. The company offers various office supplies and services, office machines and related products, computers and related products, and office furniture under Staples, Quill, and other proprietary brands. Staples has a market cap of $8.76 billion and is part of the services sector. The company has a P/E ratio of 426.5, above the S&P 500 P/E ratio of 17.7. Shares are up 14% year to date as of the close of trading on Friday. Currently there are six analysts that rate Staples a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Staples as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the negative front, Lentuo International ( LAS), down 7.9%, Birks & Mayors ( BMJ), down 6.5%, Build-A-Bear Workshop ( BBW), down 6.3%, and Medifast ( MED), down 4.5%, were all laggards within the specialty retail industry with Netflix ( NFLX) 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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