3 Stocks Dragging In The Retail Industry

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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30 points (-0.2%) at 15,089 as of Monday, May 13, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,245 issues advancing vs. 1,704 declining with 112 unchanged.

The Retail industry currently sits up 0.2% versus the S&P 500, which is unchanged.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. AutoZone ( AZO) is one of the companies pushing the Retail industry lower today. As of noon trading, AutoZone is down $6.84 (-1.6%) to $414.10 on average volume Thus far, 177,873 shares of AutoZone exchanged hands as compared to its average daily volume of 353,300 shares. The stock has ranged in price between $408.00-$414.99 after having opened the day at $408.21 as compared to the previous trading day's close of $420.95.

AutoZone, Inc. engages in retailing and distributing automotive replacement parts and accessories. AutoZone has a market cap of $15.0 billion and is part of the services sector. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 17.2% year to date as of the close of trading on Friday.

TheStreet Ratings rates AutoZone as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, expanding profit margins, good cash flow from operations and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full AutoZone Ratings Report now.

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2. As of noon trading, Gap ( GPS) is down $0.80 (-1.9%) to $40.19 on average volume Thus far, 2.6 million shares of Gap exchanged hands as compared to its average daily volume of 4.3 million shares. The stock has ranged in price between $40.18-$40.93 after having opened the day at $40.79 as compared to the previous trading day's close of $40.99.

The Gap, Inc. operates as an apparel retail company. It offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands. The company operates through two segments, Stores and Direct. Gap has a market cap of $18.1 billion and is part of the services sector. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 25.0% year to date as of the close of trading on Friday.

TheStreet Ratings rates Gap 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 shows weak operating cash flow. Get the full Gap Ratings Report now.

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1. As of noon trading, Wal-Mart Stores ( WMT) is down $0.56 (-0.7%) to $78.33 on average volume Thus far, 3.8 million shares of Wal-Mart Stores exchanged hands as compared to its average daily volume of 8.3 million shares. The stock has ranged in price between $77.92-$78.94 after having opened the day at $78.80 as compared to the previous trading day's close of $78.89.

Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. The company operates in three segments: Walmart U.S., Walmart International, and Sam's Club. Wal-Mart Stores has a market cap of $257.9 billion and is part of the services sector. The company has a P/E ratio of 15.6, below the S&P 500 P/E ratio of 17.7. Shares are up 15.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Wal-Mart Stores Ratings Report now.

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If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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