Williams-Sonoma Inc. (WSM): 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.

Williams-Sonoma ( WSM) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Williams-Sonoma fell 70 cents (-1.5%) to $45.65 on light volume. Throughout the day, 766,449 shares of Williams-Sonoma exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $45.60-$46.38 after having opened the day at $46.31 as compared to the previous trading day's close of $46.35. Other companies within the Retail industry that declined today were: Sears Hometown & Outlet Stores ( SHOS), down 12.8%, ALCO Stores ( ALCS), down 8.3%, Guess ( GES), down 4.2%, and Builders FirstSource ( BLDR), down 3.8%.
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Williams-Sonoma, Inc. operates as a specialty retailer of home products. Williams-Sonoma has a market cap of $4.54 billion and is part of the services sector. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are up 5.9% year to date as of the close of trading on Monday. Currently there are eight analysts that rate Williams-Sonoma a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Williams-Sonoma as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, BioScrip ( BIOS), up 12.6%, Roundys ( RNDY), up 8.2%, Bon-Ton Stores ( BONT), up 5%, and J.C. Penney ( JCP), up 4%, were all gainers within the retail industry with Michael Kors Holdings ( KORS) 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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