Advance Auto Parts Inc (AAP): 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.

Advance Auto Parts ( AAP) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Advance Auto Parts fell $1.21 (-1.5%) to $77.15 on average volume. Throughout the day, 970,575 shares of Advance Auto Parts exchanged hands as compared to its average daily volume of 890,100 shares. The stock ranged in price between $76.42-$78.92 after having opened the day at $78.54 as compared to the previous trading day's close of $78.36. Other companies within the Retail industry that declined today were: Liberty Interactive ( LINTB), down 8.8%, ValueVision Media ( VVTV), down 6.7%, Orchard Supply Hardware ( OSH), down 6.2%, and Cache ( CACH), down 3.5%.
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Advance Auto Parts, Inc., together with its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP), and Autopart International (AI). Advance Auto Parts has a market cap of $5.81 billion and is part of the services sector. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are up 9.5% year to date as of the close of trading on Monday. Currently there are five analysts that rate Advance Auto Parts a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Advance Auto Parts as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Haverty Furniture Companies CL A ( HVT.A), up 11.9%, Haverty Furniture Companies ( HVT), up 10.7%, Christopher & Banks Corporation ( CBK), up 5.8%, and Home Depot ( HD), up 5.7%, were all gainers within the retail industry with Macy's ( M) 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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