Safeway Inc. (SWY): Today's Featured Retail Winner

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.

Safeway ( SWY) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 0.4%. By the end of trading, Safeway rose 53 cents (2.2%) to $24.91 on average volume. Throughout the day, 9.1 million shares of Safeway exchanged hands as compared to its average daily volume of 6.1 million shares. The stock ranged in a price between $24.22-$25.24 after having opened the day at $24.29 as compared to the previous trading day's close of $24.38. Other companies within the Retail industry that increased today were: Destination XL Group ( DXLG), up 31.2%, Casual Male Retail Group ( CMRG), up 31.2%, China Jo-Jo Drugstores ( CJJD), up 28.9%, and Zumiez ( ZUMZ), up 5.3%.
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Safeway Inc., together with its subsidiaries, operates as a food and drug retailer in North America. Safeway has a market cap of $5.75 billion and is part of the services sector. The company has a P/E ratio of 10.6, below the S&P 500 P/E ratio of 17.7. Shares are up 34.8% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Safeway a buy, three analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Safeway as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, notable return on equity, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, PC Connection ( PCCC), down 6.7%, Acorn International ( ATV), down 6.6%, Aeropostale ( ARO), down 5.2%, and Arden Group ( ARDNA), down 3.9%, were all laggards within the retail industry with Whole Foods Market ( WFM) 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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