Companhia Brasileira De Distribuicao (CBD): 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

Companhia Brasileira De Distribuicao ( CBD) 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, Companhia Brasileira De Distribuicao fell $1.16 (-2.1%) to $54.91 on average volume. Throughout the day, 491,803 shares of Companhia Brasileira De Distribuicao exchanged hands as compared to its average daily volume of 593,200 shares. The stock ranged in price between $54.82-$55.93 after having opened the day at $55.77 as compared to the previous trading day's close of $56.07. Other companies within the Retail industry that declined today were: ALCO Stores ( ALCS), down 7.6%, Acorn International ( ATV), down 6.3%, U.S. Auto Parts Network ( PRTS), down 4.8% and Alon Blue Square Israel ( BSI), down 3.7%.
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Companhia Brasileira de Distribuic o engages in the retail of food and non-food products to individual consumers through its chain of hypermarkets, supermarkets, specialized and department stores, and e-commerce. Companhia Brasileira De Distribuicao has a market cap of $14.9 billion and is part of the services sector. The company has a P/E ratio of 48.5, above the S&P 500 P/E ratio of 17.7. Shares are up 26.3% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Companhia Brasileira De Distribuicao a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Companhia Brasileira De Distribuicao as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, good cash flow from operations, solid stock price performance 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 positive front, Restoration Hardware Holdings ( RH), down 18.9%, Natural Grocers by Vitamin Cottage ( NGVC), down 16.7%, dELiA*s ( DLIA), down 14.9% and QKL Stores ( QKLS), down 11.0% , were all gainers within the retail industry with Amazon.com ( AMZN) 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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