3 Specialty Retail Stocks Pushing The Industry Higher

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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 15,368 as of Monday, May 20, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,885 issues advancing vs. 1,048 declining with 118 unchanged.

The Specialty Retail industry currently sits up 0.7% versus the S&P 500, which is up 0.1%.

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

3. Francescas Holdings ( FRAN) is one of the companies pushing the Specialty Retail industry higher today. As of noon trading, Francescas Holdings is up $1.34 (4.47) to $31.31 on heavy volume Thus far, 929,793 shares of Francescas Holdings exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $29.87-$31.46 after having opened the day at $29.95 as compared to the previous trading day's close of $29.97.

Francesca's Holdings Corporation, through its subsidiary, Francesca's Collections, Inc., operates a chain of retail boutiques. The company offers a selection of fashion apparel, jewelry, accessories, and gifts primarily to its female customers. Francescas Holdings has a market cap of $1.3 billion and is part of the services sector. The company has a P/E ratio of 27.9, above the S&P 500 P/E ratio of 17.7. Shares are up 13.0% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Francescas Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Francescas Holdings as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation. Get the full Francescas Holdings Ratings Report now.

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2. As of noon trading, Cabela's ( CAB) is up $0.62 (0.87) to $71.99 on average volume Thus far, 303,750 shares of Cabela's exchanged hands as compared to its average daily volume of 684,600 shares. The stock has ranged in price between $71.02-$72.24 after having opened the day at $71.36 as compared to the previous trading day's close of $71.37.

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 $5.0 billion and is part of the services sector. The company has a P/E ratio of 26.2, above the S&P 500 P/E ratio of 17.7. Shares are up 70.9% year to date as of the close of trading on Friday. 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. Get the full Cabela's Ratings Report now.

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1. As of noon trading, Staples ( SPLS) is up $0.28 (1.93) to $14.79 on light volume Thus far, 3.9 million shares of Staples exchanged hands as compared to its average daily volume of 11.6 million shares. The stock has ranged in price between $14.43-$14.79 after having opened the day at $14.50 as compared to the previous trading day's close of $14.51.

Staples, Inc., together with its subsidiaries, operates as an office products company. It operates in three segments: North American Stores & Online, North American Commercial, and International Operations. Staples has a market cap of $9.6 billion and is part of the services sector. Shares are up 25.4% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Staples a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Staples as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Staples Ratings Report now.

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If you are interested in one of these 3 stocks, 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).

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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