Michael Kors Holdings Ltd (KORS): Today's Featured Retail Underperformer

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.

Michael Kors Holdings ( KORS) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Michael Kors Holdings fell $1.34 (-2.4%) to $54.16 on average volume. Throughout the day, 4.3 million shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in price between $53.96-$56.35 after having opened the day at $55.89 as compared to the previous trading day's close of $55.50. Other companies within the Retail industry that declined today were: Acorn International ( ATV), down 7.2%, U.S. Auto Parts Network ( PRTS), down 4.1%, Rite Aid Corporation ( RAD), down 3.7%, and RadioShack ( RSH), down 3.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Michael Kors Holdings Limited engages in the design, marketing, distribution, and retail of branded women's apparel and accessories, and men's apparel. The company sells its products primarily under the names of Michael Kors, MICHAEL KORS, MICHAEL MICHAEL KORS, and KORS MICHAEL KORS. Michael Kors Holdings has a market cap of $11.37 billion and is part of the services sector. The company has a P/E ratio of 35.3, above the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Michael Kors Holdings a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Michael Kors Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and robust revenue growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front, QKL Stores ( QKLS), up 7.7%, Alon Holdings Blue Square - Israel ( BSI), up 6.7%, Citi Trends ( CTRN), up 5.1%, and ValueVision Media ( VVTV), up 4.7%, were all gainers within the retail industry with Home Depot ( HD) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers