Sothebys (BID): 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

Sothebys ( BID) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Sothebys fell $0.57 (-1.6%) to $35.95 on heavy volume. Throughout the day, 1,772,841 shares of Sothebys exchanged hands as compared to its average daily volume of 1,009,000 shares. The stock ranged in price between $35.43-$36.59 after having opened the day at $36.25 as compared to the previous trading day's close of $36.52. Other companies within the Specialty Retail industry that declined today were: DGSE Companies ( DGSE), down 12.6%, Hollywood Media Corporation ( HOLL), down 4.3%, Sport Chalet ( SPCHB), down 3.7% and Titan Machinery ( TITN), down 3.0%.
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Sotheby's operates as an auctioneer of authenticated fine art, decorative art, and jewelry. The company operates in three segments: Auction, Finance, and Dealer. Sothebys has a market cap of $2.5 billion and is part of the services sector. The company has a P/E ratio of 25.8, above the S&P 500 P/E ratio of 17.7. Shares are up 8.6% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Sothebys a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Sothebys as a buy. The company's strongest point has been its expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Netflix ( NFLX), down 4.0%, Lentuo International ( LAS), down 3.7%, OfficeMax ( OMX), down 2.6% and Luxottica Group ( LUX), down 2.5% , were all gainers within the specialty retail industry with Office Depot ( ODP) 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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