PetSmart Inc. (PETM): 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

PetSmart ( PETM) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole closed the day up 2.2%. By the end of trading, PetSmart rose $0.84 (1.2%) to $68.40 on light volume. Throughout the day, 978,839 shares of PetSmart exchanged hands as compared to its average daily volume of 1,661,700 shares. The stock ranged in a price between $67.31-$68.64 after having opened the day at $67.89 as compared to the previous trading day's close of $67.56. Other companies within the Specialty Retail industry that increased today were: Build-A-Bear Workshop ( BBW), up 33.3%, Lentuo International ( LAS), up 9.4%, EZCorp ( EZPW), up 6.8% and Group 1 Automotive ( GPI), up 5.5%.
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PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada. PetSmart has a market cap of $7.0 billion and is part of the services sector. The company has a P/E ratio of 19.2, above the S&P 500 P/E ratio of 17.7. Shares are down 1.1% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate PetSmart a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates PetSmart 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 notable return on equity. 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, Bluefly ( BFLY), down 7.2% and 1-800 Flowers.com ( FLWS), down 2.6%.

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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