Sally Beauty Holdings Inc (SBH): Today's Featured Specialty 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

Sally Beauty Holdings ( SBH) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Sally Beauty Holdings fell $0.34 (-1.1%) to $30.30 on light volume. Throughout the day, 1,244,007 shares of Sally Beauty Holdings exchanged hands as compared to its average daily volume of 1,756,200 shares. The stock ranged in price between $30.23-$30.61 after having opened the day at $30.58 as compared to the previous trading day's close of $30.64. Other companies within the Specialty Retail industry that declined today were: Barnes & Noble ( BKS), down 9.5%, Sport Chalet ( SPCHA), down 8.6%, Lentuo International ( LAS), down 5.0% and Dover Saddlery ( DOVR), down 4.8%.
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Sally Beauty Holdings, Inc., through its subsidiaries, engages in the distribution and retail of professional beauty supplies primarily in North America, South America, and Europe. The company operates in two segments, Sally Beauty Supply and Beauty Systems Group. Sally Beauty Holdings has a market cap of $5.2 billion and is part of the services sector. The company has a P/E ratio of 21.6, above the S&P 500 P/E ratio of 17.7. Shares are up 30.0% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Sally Beauty Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Sally Beauty Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Odyssey Marine Exploration ( OMEX), down 5.5%, Netflix ( NFLX), down 5.4%, 1-800 ( FLWS), down 5.0% and Big 5 Sporting Goods Corporation ( BGFV), down 3.6% , were all gainers within the specialty retail industry with Copart ( CPRT) being today's featured specialty retail industry leader.

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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