3 Retail Stocks Dragging The Industry Down

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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 14,544 as of Monday, April 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,423 issues advancing vs. 1,490 declining with 125 unchanged.

The Retail industry currently sits up 0.1% versus the S&P 500, which is up 0.3%. A company within the industry that fell today was Wal-Mart Stores ( WMT), up 0.49.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Gap ( GPS) is one of the companies pushing the Retail industry lower today. As of noon trading, Gap is down $0.66 (-1.8%) to $36.34 on average volume Thus far, 1.8 million shares of Gap exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $36.23-$37.17 after having opened the day at $37.11 as compared to the previous trading day's close of $37.00.

The Gap, Inc. operates as an apparel retail company. It offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands. The company operates through two segments, Stores and Direct. Gap has a market cap of $17.3 billion and is part of the services sector. The company has a P/E ratio of 16.0, below the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Friday.

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

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2. As of noon trading, Lowe's Companies ( LOW) is down $0.21 (-0.6%) to $37.75 on light volume Thus far, 2.8 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 9.1 million shares. The stock has ranged in price between $37.39-$38.06 after having opened the day at $38.03 as compared to the previous trading day's close of $37.96.

Lowe's Companies, Inc. operates as a home improvement retailer. It offers products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $40.6 billion and is part of the services sector. The company has a P/E ratio of 22.1, above the S&P 500 P/E ratio of 17.7. Shares are up 7.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Lowe's Companies Ratings Report now.

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1. As of noon trading, eBay ( EBAY) is down $0.44 (-0.8%) to $51.95 on average volume Thus far, 7.7 million shares of eBay exchanged hands as compared to its average daily volume of 10.8 million shares. The stock has ranged in price between $51.16-$52.32 after having opened the day at $52.14 as compared to the previous trading day's close of $52.39.

eBay Inc. provides online platforms, tools, and services to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. eBay has a market cap of $68.4 billion and is part of the services sector. The company has a P/E ratio of 25.5, above the S&P 500 P/E ratio of 17.7. Shares are up 3.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates eBay as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full eBay Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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