Lowe's Companies Inc. (LOW): 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

Lowe's Companies ( LOW) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 1.5%. By the end of trading, Lowe's Companies fell $0.52 (-1.3%) to $40.29 on average volume. Throughout the day, 8,811,368 shares of Lowe's Companies exchanged hands as compared to its average daily volume of 8,556,100 shares. The stock ranged in price between $40.12-$41.14 after having opened the day at $40.87 as compared to the previous trading day's close of $40.81. Other companies within the Retail industry that declined today were: Pantry ( PTRY), down 10.6%, Orchard Supply Hardware ( OSH), down 5.4%, E-Commerce China Dangdang ( DANG), down 4.1% and dELiA*s ( DLIA), down 3.8%.
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Lowe's Companies, Inc. operates as a home improvement retailer. It offers products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $43.1 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 14.9% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Lowe's Companies a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Destination XL Group ( DXLG), down 35.7%, Casual Male Retail Group ( CMRG), down 35.7%, Mercadolibre ( MELI), down 17.9% and Core-Mark Holding Company ( CORE), down 7.5% , were all gainers within the retail industry with CVS Caremark ( CVS) 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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