Cabela's Inc. (CAB): Today's Featured Specialty Retail Laggard

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

Cabela's ( CAB) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Cabela's fell $1.02 (-1.9%) to $53.85 on heavy volume. Throughout the day, 1,035,447 shares of Cabela's exchanged hands as compared to its average daily volume of 667,400 shares. The stock ranged in price between $53.07-$54.78 after having opened the day at $53.57 as compared to the previous trading day's close of $54.87. Other companies within the Specialty Retail industry that declined today were: Books-A-Million ( BAMM), down 4.8%, Perfumania Holdings ( PERF), down 2.9%, Big 5 Sporting Goods Corporation ( BGFV), down 2.6% and America's Car-Mart ( CRMT), down 2.5%.
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Cabela's Incorporated, together with its subsidiaries, operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. The company operates through three segments: Retail, Direct, and Financial Services. Cabela's has a market cap of $3.8 billion and is part of the services sector. The company has a P/E ratio of 22.4, above the S&P 500 P/E ratio of 17.7. Shares are up 31.4% year to date as of the close of trading on Friday.

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

On the positive front, Netflix ( NFLX), down 6.7%, Odyssey Marine Exploration ( OMEX), down 5.6%, Mecox Lane ( MCOX), down 5.3% and Lentuo International ( LAS), down 4.3% , were all gainers within the specialty retail industry with CarMax ( KMX) being today's featured specialty retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the specialty retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the specialty retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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