Specialty Retail Industry Underperformer Of The Day: Sothebys (BID)

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.

Sothebys ( BID) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Sothebys fell 49 cents (-1.3%) to $37.08 on average volume. Throughout the day, 1.1 million shares of Sothebys exchanged hands as compared to its average daily volume of 785,200 shares. The stock ranged in price between $37-$37.93 after having opened the day at $37.84 as compared to the previous trading day's close of $37.57. Other companies within the Specialty Retail industry that declined today were: Sport Chalet ( SPCHB), down 5%, Five Below ( FIVE), down 4%, Zumiez ( ZUMZ), down 3.5%, and Perfumania Holdings ( PERF), down 3.4%.
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Sotheby's operates as an auctioneer of authenticated fine art, decorative art, and jewelry. The company operates in three segments: Auction, Finance, and Dealer. Sothebys has a market cap of $2.56 billion and is part of the services sector. The company has a P/E ratio of 24, above the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Monday. Currently there are three analysts that rate Sothebys a buy, one analyst rates it a sell, and one rates it a hold.

TheStreet Ratings rates Sothebys as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.

On the positive front, Mecox Lane ( MCOX), up 9.5%, EZCorp ( EZPW), up 3%, Bluefly ( BFLY), up 2.5%, and Birks & Mayors ( BMJ), up 2.4%, were all gainers within the specialty retail industry with Netflix ( NFLX) being today's featured specialty retail industry leader.

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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