Sally Beauty Holdings Inc (SBH): Today's Featured Specialty 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

Sally Beauty Holdings ( SBH) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole closed the day up 1.7%. By the end of trading, Sally Beauty Holdings rose $0.39 (1.3%) to $29.89 on light volume. Throughout the day, 651,973 shares of Sally Beauty Holdings exchanged hands as compared to its average daily volume of 1,898,300 shares. The stock ranged in a price between $29.48-$29.98 after having opened the day at $29.71 as compared to the previous trading day's close of $29.50. Other companies within the Specialty Retail industry that increased today were: Netflix ( NFLX), up 24.4%, Lentuo International ( LAS), up 9.8%, Perfumania Holdings ( PERF), up 8.3% and TravelCenters of America ( TA), up 6.9%.
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Sally Beauty Holdings, Inc., through its subsidiaries, engages in the distribution and retail of professional beauty supplies primarily in North America, South America, and Europe. The company operates in two segments, Sally Beauty Supply and Beauty Systems Group. Sally Beauty Holdings has a market cap of $5.2 billion and is part of the services sector. The company has a P/E ratio of 21.1, above the S&P 500 P/E ratio of 17.7. Shares are up 25.2% year to date as of the close of trading on Monday.

TheStreet Ratings rates Sally Beauty Holdings 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 expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Mecox Lane ( MCOX), down 10.7%, Birks & Mayors ( BMJ), down 7.9%, EZCorp ( EZPW), down 3.1% and OfficeMax ( OMX), down 1.6% , were all laggards within the specialty retail industry with Staples ( SPLS) being today's specialty retail industry laggard.

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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