3 Stocks Dragging The Specialty 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 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 lower today:

3. Copart ( CPRT) is one of the companies pushing the Specialty Retail industry lower today. As of noon trading, Copart is down $0.69 (-1.8%) to $37.40 on average volume Thus far, 413,877 shares of Copart exchanged hands as compared to its average daily volume of 955,200 shares. The stock has ranged in price between $37.37-$37.90 after having opened the day at $37.69 as compared to the previous trading day's close of $38.09.

Copart, Inc. provides online auctions and vehicle remarketing services in the United States, Canada, and the United Kingdom. The company offers various services to process and sell vehicles over the Internet through its Virtual Bidding Second Generation Internet auction-style sales technology. Copart has a market cap of $4.6 billion and is part of the services sector. The company has a P/E ratio of 25.7, above the S&P 500 P/E ratio of 17.7. Shares are up 24.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates Copart as a buy. 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, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Copart Ratings Report now.

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2. As of noon trading, CarMax ( KMX) is down $0.92 (-1.9%) to $47.75 on average volume Thus far, 1.1 million shares of CarMax exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $47.50-$48.02 after having opened the day at $47.69 as compared to the previous trading day's close of $48.67.

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. It operates in two segments, CarMax Sales Operations and CarMax Auto Finance. CarMax has a market cap of $10.7 billion and is part of the services sector. The company has a P/E ratio of 25.5, above the S&P 500 P/E ratio of 17.7. Shares are up 29.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates CarMax as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full CarMax Ratings Report now.

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1. As of noon trading, Netflix ( NFLX) is down $1.87 (-0.8%) to $237.13 on light volume Thus far, 1.5 million shares of Netflix exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $236.76-$241.65 after having opened the day at $238.44 as compared to the previous trading day's close of $239.00.

Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. Netflix has a market cap of $13.3 billion and is part of the services sector. The company has a P/E ratio of 564.4, above the S&P 500 P/E ratio of 17.7. Shares are up 156.0% year to date as of the close of trading on Friday.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk. Get the full Netflix 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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