GameStop Corp (GME): Retail's Featured Underachiever Of The Day

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.

GameStop ( GME) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 1.6%. By the end of trading, GameStop fell 36 cents (-1.2%) to $29.89 on average volume. Throughout the day, 4.5 million shares of GameStop exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in price between $29.49-$31.10 after having opened the day at $30.21 as compared to the previous trading day's close of $30.25. Other companies within the Retail industry that declined today were: Cache ( CACH), down 5.5%, QKL Stores ( QKLS), down 4.5%, ALCO Stores ( ALCS), down 3.5%, and China Nepstar Chain Drugstore ( NPD), down 3.2%.
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GameStop Corp. operates as a video game retailer. GameStop has a market cap of $3.66 billion and is part of the services sector. The company has a P/E ratio of 9.5, below the S&P 500 P/E ratio of 17.7. Shares are up 20.6% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate GameStop a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates GameStop as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

On the positive front, Best Buy ( BBY), up 16.1%, Conn's ( CONN), up 13.1%, Liquidity Service ( LQDT), up 11.6%, and Jos A. Bank Clothiers ( JOSB), up 8%, were all gainers within the retail industry with Target ( TGT) 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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