Tiffany & Co. (TIF): Today's Featured Specialty 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

Tiffany ( TIF) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Tiffany fell $1.06 (-1.4%) to $77.32 on average volume. Throughout the day, 1,982,666 shares of Tiffany exchanged hands as compared to its average daily volume of 1,537,000 shares. The stock ranged in price between $77.07-$79.35 after having opened the day at $78.61 as compared to the previous trading day's close of $78.38. Other companies within the Specialty Retail industry that declined today were: Sport Chalet ( SPCHB), down 9.3%, DGSE Companies ( DGSE), down 8.7%, Sport Chalet ( SPCHA), down 7.3% and CSS Industries ( CSS), down 3.8%.
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Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of jewelry worldwide. The company operates through Americas, Asia-Pacific, Japan, Europe, and Other segments. Tiffany has a market cap of $9.9 billion and is part of the services sector. The company has a P/E ratio of 24.0, above the S&P 500 P/E ratio of 17.7. Shares are up 36.7% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Tiffany a buy, 1 analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Tiffany 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, increase in stock price during the past year, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Zale Corporation ( ZLC), down 22.2%, Lentuo International ( LAS), down 5.7%, Bluefly ( BFLY), down 5.4% and China Auto Logistics ( CALI), down 3.5%.

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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