Best Buy Co Inc (BBY): 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.

Best Buy ( BBY) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 1.5%. By the end of trading, Best Buy fell 92 cents (-3.6%) to $24.82 on average volume. Throughout the day, 14.2 million shares of Best Buy exchanged hands as compared to its average daily volume of 12.4 million shares. The stock ranged in price between $24.40-$25.76 after having opened the day at $25.76 as compared to the previous trading day's close of $25.74. Other companies within the Retail industry that declined today were: China Jo-Jo Drugstores ( CJJD), down 10.7%, QKL Stores ( QKLS), down 9.1%, ALCO Stores ( ALCS), down 4%, and PC Connection ( PCCC), down 2.2%.
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Best Buy Co., Inc. operates as a retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Best Buy has a market cap of $8.79 billion and is part of the services sector. The company has a P/E ratio of 8.5, below the S&P 500 P/E ratio of 17.7. Shares are up 117.2% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate Best Buy a buy, two analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Best Buy as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

On the positive front, Cache ( CACH), up 10.5%, Pacific Sunwear ( PSUN), up 7.6%, U.S. Auto Parts Network ( PRTS), up 6.5%, and Pricesmart ( PSMT), up 5.8%, were all gainers within the retail industry with Amazon.com ( AMZN) 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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