Retail Industry's Featured Straggler Of The Day: Family Dollar Stores Inc. (FDO)

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.

Family Dollar Stores ( FDO) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 1.4%. By the end of trading, Family Dollar Stores fell 66 cents (-1.1%) to $59.78 on heavy volume. Throughout the day, 2.8 million shares of Family Dollar Stores exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $59-$60.13 after having opened the day at $59.59 as compared to the previous trading day's close of $60.44. Other companies within the Retail industry that declined today were: Natural Grocers by Vitamin Cottage ( NGVC), down 6.6%, Alon Holdings Blue Square - Israel ( BSI), down 3.8%, Best Buy ( BBY), down 2.9%, and Vitacost.com ( VITC), down 2.5%.
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Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low- and middle-income consumers in the United States. Family Dollar Stores has a market cap of $6.93 billion and is part of the services sector. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are down 4.7% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Family Dollar Stores a buy, two analysts rate it a sell, and 10 rate it a hold.

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

On the positive front, Rite Aid Corporation ( RAD), up 18.4%, Zumiez ( ZUMZ), up 13.4%, Cache ( CACH), up 7.5%, and Tilly's ( TLYS), up 7.5%, were all gainers within the retail industry with CVS Caremark ( CVS) 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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