KR, SWY, BBBY And CVS, Pushing Retail Industry Downward

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 Retail industry currently sits up 0.5% versus the S&P 500, which is up 0.1%. A company within the industry that fell today was Target ( TGT), up 0.73.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Kroger ( KR) is one of the companies pushing the Retail industry lower today. As of noon trading, Kroger is down $0.47 (-1.3%) to $34.95 on light volume Thus far, 1.3 million shares of Kroger exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $34.95-$35.41 after having opened the day at $35.38 as compared to the previous trading day's close of $35.42.

The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. The company also manufactures and processes food for sale in its supermarkets. It operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores. Kroger has a market cap of $18.2 billion and is part of the services sector. The company has a P/E ratio of 12.7, below the S&P 500 P/E ratio of 17.7. Shares are up 36.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Kroger as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and compelling growth 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 Kroger Ratings Report now.

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3. As of noon trading, Safeway ( SWY) is down $0.61 (-2.4%) to $24.54 on light volume Thus far, 2.2 million shares of Safeway exchanged hands as compared to its average daily volume of 6.5 million shares. The stock has ranged in price between $24.39-$25.19 after having opened the day at $25.17 as compared to the previous trading day's close of $25.15.

Safeway Inc., together with its subsidiaries, operates as a food and drug retailer in North America. Safeway has a market cap of $6.0 billion and is part of the services sector. The company has a P/E ratio of 10.2, below the S&P 500 P/E ratio of 17.7. Shares are up 39.0% year to date as of the close of trading on Friday.

TheStreet Ratings rates Safeway 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, increase in net income and attractive valuation levels. 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 Safeway Ratings Report now.

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2. As of noon trading, Bed Bath & Beyond ( BBBY) is down $1.50 (-2.2%) to $67.62 on average volume Thus far, 1.5 million shares of Bed Bath & Beyond exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $67.54-$68.77 after having opened the day at $68.00 as compared to the previous trading day's close of $69.12.

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. Bed Bath & Beyond has a market cap of $15.1 billion and is part of the services sector. The company has a P/E ratio of 15.1, below the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Friday.

TheStreet Ratings rates Bed Bath & Beyond as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Bed Bath & Beyond Ratings Report now.

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1. As of noon trading, CVS Caremark ( CVS) is down $0.37 (-0.6%) to $59.07 on light volume Thus far, 1.3 million shares of CVS Caremark exchanged hands as compared to its average daily volume of 5.8 million shares. The stock has ranged in price between $59.03-$59.44 after having opened the day at $59.43 as compared to the previous trading day's close of $59.44.

CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. CVS Caremark has a market cap of $72.7 billion and is part of the services sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Friday.

TheStreet Ratings rates CVS Caremark 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, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full CVS Caremark Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 5 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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