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.
Best Buy (
BBY) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day down 0.3%. By the end of trading, Best Buy rose 35 cents (1.9%) to $18.75 on heavy volume. Throughout the day, 26.6 million shares of Best Buy exchanged hands as compared to its average daily volume of 10.7 million shares. The stock ranged in a price between $17.79-$19.50 after having opened the day at $19.29 as compared to the previous trading day's close of $18.40. Other companies within the Retail industry that increased today were:
China Jo-Jo Drugstores (
CJJD), up 7.3%,
Big Lots (
BIG), up 6.1%,
Tilly's (
TLYS), up 4%, and
Mercadolibre (
MELI), up 3.7%.
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Best Buy Co., Inc. operates as a retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Best Buy has a market cap of $6.01 billion and is part of the services sector. The company has a P/E ratio of 6.8, below the S&P 500 P/E ratio of 17.7. Shares are up 55.3% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Best Buy a buy, two analysts rate it a sell, and 14 rate it a hold.
TheStreet Ratings rates Best Buy as a
sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.
On the negative front,
Orchard Supply Hardware (
OSH), down 12.9%,
Fresh Market (
TFM), down 9.7%,
Overstock.com (
OSTK), down 3.6%, and
J.C. Penney (
JCP), down 3.5%, were all laggards within the retail industry with
American Eagle Outfitters (
AEO) being today's retail industry laggard.
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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