Retail Industry Underperformer Of The Day: Costco Wholesale Corporation (COST)

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.

Costco Wholesale Corporation ( COST) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Costco Wholesale Corporation fell $1.25 (-1.2%) to $105.79 on average volume. Throughout the day, 1.9 million shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $105.59-$107.28 after having opened the day at $107.25 as compared to the previous trading day's close of $107.04. Other companies within the Retail industry that declined today were: Cache ( CACH), down 17.4%, J.C. Penney ( JCP), down 12.2%, Acorn International ( ATV), down 5.1%, and Alon Holdings Blue Square - Israel ( BSI), down 5%.
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Costco Wholesale Corporation engages in the operation of membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Costco Wholesale Corporation has a market cap of $46.17 billion and is part of the services sector. The company has a P/E ratio of 23.7, above the S&P 500 P/E ratio of 17.7. Shares are up 8.4% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Costco Wholesale Corporation a buy, two analysts rate it a sell, and seven rate it a hold.

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

On the positive front, Destination XL Group ( DXLG), up 41.1%, Casual Male Retail Group ( CMRG), up 41.1%, ( VITC), up 6%, and ValueVision Media ( VVTV), up 5%, were all gainers within the retail industry with L Brands ( LTD) 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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