Cabela's Inc. (CAB): Today's Featured Specialty Retail Winner

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

Cabela's ( CAB) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole closed the day down 2.3%. By the end of trading, Cabela's rose $1.13 (1.6%) to $71.38 on heavy volume. Throughout the day, 1,214,897 shares of Cabela's exchanged hands as compared to its average daily volume of 671,700 shares. The stock ranged in a price between $70.15-$72.18 after having opened the day at $70.26 as compared to the previous trading day's close of $70.25. Other companies within the Specialty Retail industry that increased today were: Lentuo International ( LAS), up 9.1% and Medifast ( MED), up 2.2%.
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Cabela's Incorporated, together with its subsidiaries, operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. The company operates through three segments: Retail, Direct, and Financial Services. Cabela's has a market cap of $4.9 billion and is part of the services sector. The company has a P/E ratio of 25.4, above the S&P 500 P/E ratio of 17.7. Shares are up 68.3% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Cabela's a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Cabela's as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. 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 negative front, Sport Chalet ( SPCHB), down 27.6%, Sport Chalet ( SPCHA), down 27.3%, Bluefly ( BFLY), down 21.6% and Mecox Lane ( MCOX), down 12.1% , were all laggards within the specialty retail industry with Staples ( SPLS) being today's specialty retail industry laggard.

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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