Bed Bath & Beyond Inc. (BBBY): Today's Featured 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

Bed Bath & Beyond ( BBBY) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 1.3%. By the end of trading, Bed Bath & Beyond fell $1.15 (-1.6%) to $68.57 on average volume. Throughout the day, 3,214,767 shares of Bed Bath & Beyond exchanged hands as compared to its average daily volume of 2,630,600 shares. The stock ranged in price between $68.40-$69.62 after having opened the day at $69.17 as compared to the previous trading day's close of $69.72. Other companies within the Retail industry that declined today were: dELiA*s ( DLIA), down 7.6%, Acorn International ( ATV), down 6.8%, Cache ( CACH), down 4.4% and bebe stores ( BEBE), down 4.0%.
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Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. Bed Bath & Beyond has a market cap of $15.1 billion and is part of the services sector. The company has a P/E ratio of 15.1, below the S&P 500 P/E ratio of 17.7. Shares are up 23.1% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Bed Bath & Beyond a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Bed Bath & Beyond as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, PC Connection ( PCCC), down 10.4%, Harris Teeter Supermarkets ( HTSI), down 8.0%, Stein Mart ( SMRT), down 7.8% and Builders FirstSource ( BLDR), down 4.9% , were all gainers within the retail industry with Wal-Mart Stores ( WMT) being today's featured retail industry leader.

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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