Bed Bath & Beyond Inc. (BBBY): Today's Featured Retail Straggler

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.

Bed Bath & Beyond ( BBBY) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Bed Bath & Beyond fell 82 cents (-1.3%) to $64.42 on average volume. Throughout the day, 2.5 million shares of Bed Bath & Beyond exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in price between $64.32-$65.24 after having opened the day at $65.07 as compared to the previous trading day's close of $65.24. Other companies within the Retail industry that declined today were: dELiA*s ( DLIA), down 7.9%, Pantry ( PTRY), down 3.3%, Tuesday Morning Corporation ( TUES), down 3%, and Fred's ( FRED), down 3%.
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Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. Bed Bath & Beyond has a market cap of $14.62 billion and is part of the services sector. The company has a P/E ratio of 14.9, below the S&P 500 P/E ratio of 17.7. Shares are up 16.7% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Bed Bath & Beyond a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Bed Bath & Beyond as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, U.S. Auto Parts Network ( PRTS), up 10.1%, Cache ( CACH), up 9.6%, GameStop ( GME), up 5.8%, and ALCO Stores ( ALCS), up 5.4%, were all gainers within the retail industry with J.C. Penney ( JCP) 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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