OfficeMax Inc (OMX): 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

OfficeMax ( OMX) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.8%. By the end of trading, OfficeMax fell $0.15 (-1.3%) to $11.31 on light volume. Throughout the day, 1,066,565 shares of OfficeMax exchanged hands as compared to its average daily volume of 2,901,800 shares. The stock ranged in price between $11.24-$11.55 after having opened the day at $11.45 as compared to the previous trading day's close of $11.46. Other companies within the Specialty Retail industry that declined today were: Mecox Lane ( MCOX), down 11.8%, Bluefly ( BFLY), down 6.2%, MarineMax ( HZO), down 2.8% and Hastings Entertainment ( HAST), down 1.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

OfficeMax Incorporated, together with its subsidiaries, distributes business-to-business and retail office products. OfficeMax has a market cap of $1.0 billion and is part of the services sector. The company has a P/E ratio of 2.5, below the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates OfficeMax as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and feeble growth in the company's earnings per share.

On the positive front, TravelCenters of America ( TA), down 9.6%, Birks & Mayors ( BMJ), down 8.6%, Asbury Automotive Group ( ABG), down 7.1% and Trans World Entertainment ( TWMC), down 7.1%.

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).

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.