Kroger Co (KR): Today's Featured Retail Winner

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

Kroger ( KR) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 0.3%. By the end of trading, Kroger rose $0.50 (1.5%) to $34.21 on light volume. Throughout the day, 3,001,142 shares of Kroger exchanged hands as compared to its average daily volume of 4,226,100 shares. The stock ranged in a price between $33.69-$34.36 after having opened the day at $33.70 as compared to the previous trading day's close of $33.71. Other companies within the Retail industry that increased today were: Destination XL Group ( DXLG), up 23.7%, Casual Male Retail Group ( CMRG), up 23.7%, Delhaize Group ( DEG), up 11.1% and SUPERVALU ( SVU), up 6.4%.
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The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. The company also manufactures and processes food for sale in its supermarkets. It operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores. Kroger has a market cap of $17.6 billion and is part of the services sector. The company has a P/E ratio of 12.2, below the S&P 500 P/E ratio of 17.7. Shares are up 29.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates Kroger as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, dELiA*s ( DLIA), down 10.1%, QKL Stores ( QKLS), down 6.0%, China Jo-Jo Drugstores ( CJJD), down 4.2% and New York & Company ( NWY), down 3.8% , were all laggards within the retail industry with eBay ( EBAY) being today's retail industry laggard.

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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