Cabela's Inc. (CAB): Today's Featured Specialty 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.

Cabela's ( CAB) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Cabela's fell 61 cents (-1.2%) to $51.10 on average volume. Throughout the day, 909,703 shares of Cabela's exchanged hands as compared to its average daily volume of 836,100 shares. The stock ranged in price between $50.68-$52.52 after having opened the day at $51.67 as compared to the previous trading day's close of $51.71. Other companies within the Specialty Retail industry that declined today were: iParty Corporation ( IPT), down 6.1%, Zagg ( ZAGG), down 5.2%, Hollywood Media Corporation ( HOLL), down 3.5%, and OfficeMax ( OMX), down 2.6%.
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Cabela's Incorporated, together with its subsidiaries, operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. Cabela's has a market cap of $3.6 billion and is part of the services sector. The company has a P/E ratio of 21, above the S&P 500 P/E ratio of 17.7. Shares are up 23.2% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Cabela's a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Cabela's 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, compelling growth in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Netflix ( NFLX), up 42.2%, TravelCenters of America ( TA), up 11%, Medifast ( MED), up 4.9%, and Lentuo International ( LAS), up 4.7%, were all gainers within the specialty retail industry with PetSmart ( PETM) being today's featured specialty retail industry leader.

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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