GNC Acquisition Holdings Inc (GNC): 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

GNC Acquisition Holdings ( GNC) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 1.0%. By the end of trading, GNC Acquisition Holdings fell $0.59 (-1.3%) to $44.44 on average volume. Throughout the day, 1,475,221 shares of GNC Acquisition Holdings exchanged hands as compared to its average daily volume of 1,594,900 shares. The stock ranged in price between $44.12-$45.15 after having opened the day at $45.00 as compared to the previous trading day's close of $45.03. Other companies within the Retail industry that declined today were: Alon Blue Square Israel ( BSI), down 8.8%, Acorn International ( ATV), down 8.0%, Natural Grocers by Vitamin Cottage ( NGVC), down 4.0% and Stage Stores ( SSI), down 2.5%.
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GNC Holdings, Inc. operates as a specialty retailer of health and wellness products. It operates through three segments: Retail, Franchise, and Manufacturing/Wholesale. GNC Acquisition Holdings has a market cap of $4.5 billion and is part of the services sector. The company has a P/E ratio of 18.7, above the S&P 500 P/E ratio of 17.7. Shares are up 35.3% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate GNC Acquisition Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates GNC Acquisition Holdings as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth and notable return on equity. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the positive front, Orchard Supply Hardware ( OSH), down 57.4%, Core-Mark Holding Company ( CORE), down 4.6%, Pantry ( PTRY), down 4.4% and U.S. Auto Parts Network ( PRTS), down 4.0% , were all gainers within the retail industry with Target ( TGT) 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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