CVS Caremark Corp (CVS): Today's Featured 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

CVS Caremark ( CVS) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 1.0%. By the end of trading, CVS Caremark fell $0.81 (-1.4%) to $58.70 on average volume. Throughout the day, 5,968,936 shares of CVS Caremark exchanged hands as compared to its average daily volume of 5,755,200 shares. The stock ranged in price between $58.49-$59.94 after having opened the day at $59.43 as compared to the previous trading day's close of $59.51. Other companies within the Retail industry that declined today were: Gaiam Inc. Class A ( GAIA), down 14.8%, E-Commerce China Dangdang ( DANG), down 8.6%, Stamps.com ( STMP), down 6.7% and Natural Grocers by Vitamin Cottage ( NGVC), down 6.4%.
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CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. CVS Caremark has a market cap of $72.2 billion and is part of the services sector. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 23.1% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate CVS Caremark a buy, no analysts rate it a sell, and 1 rates it a hold.

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.

On the positive front, Saks Incorporated ( SKS), down 13.4%, Orchard Supply Hardware ( OSH), down 7.6%, QKL Stores ( QKLS), down 5.8% and Citi Trends ( CTRN), down 5.3% , were all gainers within the retail industry with Home Depot ( HD) being today's featured retail industry leader.

For investors not wanting singular stock exposure, 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).

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