3 Stocks Pushing The Retail Industry Downward

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 22 points (-0.2%) at 14,429 as of Tuesday, March 19, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,094 issues advancing vs. 1,811 declining with 142 unchanged.

The Retail industry currently sits down 1.1% versus the S&P 500, which is down 0.4%. On the negative front, top decliners within the industry include Michael Kors Holdings ( KORS), down 3.5%, Limited Brands ( LTD), down 2.4%, Amazon.com ( AMZN), down 0.9% and Target ( TGT), down 0.7%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Kohl's ( KSS) is one of the companies pushing the Retail industry lower today. As of noon trading, Kohl's is down $2.02 (-4.2%) to $46.52 on heavy volume Thus far, 2.5 million shares of Kohl's exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $46.46-$47.89 after having opened the day at $47.57 as compared to the previous trading day's close of $48.54.

Kohl's Corporation operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. Kohl's has a market cap of $11.3 billion and is part of the services sector. The company has a P/E ratio of 11.8, below the S&P 500 P/E ratio of 17.7. Shares are up 12.9% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate Kohl's a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Kohl's as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and poor profit margins. Get the full Kohl's Ratings Report now.

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2. As of noon trading, Gap ( GPS) is down $0.62 (-1.7%) to $35.83 on average volume Thus far, 2.4 million shares of Gap exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $35.77-$36.72 after having opened the day at $36.37 as compared to the previous trading day's close of $36.45.

The Gap, Inc. operates as a specialty retailer. The company offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brand names. Gap has a market cap of $17.4 billion and is part of the services sector. The company has a P/E ratio of 15.6, below the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Gap a buy, 3 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Gap as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Gap Ratings Report now.

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1. As of noon trading, Lowe's Companies ( LOW) is down $0.47 (-1.2%) to $38.27 on average volume Thus far, 3.6 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 9.4 million shares. The stock has ranged in price between $38.19-$39.00 after having opened the day at $38.80 as compared to the previous trading day's close of $38.74.

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer. It offers a range of products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $43.6 billion and is part of the services sector. The company has a P/E ratio of 23.0, above the S&P 500 P/E ratio of 17.7. Shares are up 9.1% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Lowe's Companies a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Lowe's Companies Ratings Report now.

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If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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