Office Depot Inc (ODP): 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.

Office Depot ( ODP) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Office Depot fell 18 cents (-4.3%) to $4.01 on average volume. Throughout the day, 8.1 million shares of Office Depot exchanged hands as compared to its average daily volume of 10.8 million shares. The stock ranged in price between $3.99-$4.22 after having opened the day at $4.20 as compared to the previous trading day's close of $4.19. Other companies within the Specialty Retail industry that declined today were: Staples ( SPLS), down 7.2%, OfficeMax ( OMX), down 4.3%, Birks & Mayors ( BMJ), down 3.2%, and Ferrellgas Partners ( FGP), down 3%.
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Office Depot, Inc., together with its subsidiaries, supplies office products and services. Office Depot has a market cap of $1.19 billion and is part of the services sector. Shares are up 27.7% year to date as of the close of trading on Tuesday. Currently there is one analyst that rates Office Depot a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Office Depot 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 feeble growth in its earnings per share.

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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