Costco Wholesale Corporation (COST): 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

Costco Wholesale Corporation ( COST) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 1.6%. By the end of trading, Costco Wholesale Corporation rose $2.09 (2.0%) to $107.25 on average volume. Throughout the day, 1,725,066 shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of 2,035,300 shares. The stock ranged in a price between $105.54-$107.35 after having opened the day at $105.74 as compared to the previous trading day's close of $105.16. Other companies within the Retail industry that increased today were: QKL Stores ( QKLS), up 12.8%, Christopher & Banks Corporation ( CBK), up 7.2%, Liquidity Service ( LQDT), up 6.7% and Pantry ( PTRY), up 6.5%.
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Costco Wholesale Corporation engages in the operation of membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Costco Wholesale Corporation has a market cap of $45.6 billion and is part of the services sector. The company has a P/E ratio of 23.4, above the S&P 500 P/E ratio of 17.7. Shares are up 5.8% year to date as of the close of trading on Monday.

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

On the negative front, ALCO Stores ( ALCS), down 3.4%, Coastal Contacts ( COA), down 3.2% and Cache ( CACH), down 3.0%.

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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