Abercrombie & Fitch Co. (ANF): Today's Featured 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.

Abercrombie & Fitch ( ANF) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Abercrombie & Fitch fell $2.19 (-4.5%) to $46.86 on heavy volume. Throughout the day, 13.4 million shares of Abercrombie & Fitch exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $45-$48.85 after having opened the day at $48.22 as compared to the previous trading day's close of $49.05. Other companies within the Retail industry that declined today were: Orchard Supply Hardware ( OSH), down 5.8%, Coastal Contacts ( COA), down 4.8%, Children's Place Retail Stores ( PLCE), down 4.7%, and China Jo-Jo Drugstores ( CJJD), down 3.7%.
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Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. Abercrombie & Fitch has a market cap of $4.04 billion and is part of the services sector. The company has a P/E ratio of 37.7, above the S&P 500 P/E ratio of 17.7. Shares are up 6% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Abercrombie & Fitch a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Abercrombie & Fitch as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, QKL Stores ( QKLS), up 9.9%, Builders FirstSource ( BLDR), up 6.3%, Pacific Sunwear ( PSUN), up 5.8%, and Cache ( CACH), up 5.3%, were all gainers within the retail industry with Home Depot ( HD) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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