Francescas Holdings Corp (FRAN): Today's Featured Specialty Retail Winner

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

Francescas Holdings ( FRAN) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole closed the day down 1.0%. By the end of trading, Francescas Holdings rose $0.55 (1.9%) to $30.09 on heavy volume. Throughout the day, 2,684,536 shares of Francescas Holdings exchanged hands as compared to its average daily volume of 1,185,500 shares. The stock ranged in a price between $29.18-$30.59 after having opened the day at $29.76 as compared to the previous trading day's close of $29.54. Other companies within the Specialty Retail industry that increased today were: Lentuo International ( LAS), up 13.6%, DGSE Companies ( DGSE), up 7.0% and Sport Chalet ( SPCHA), up 5.6%.
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Francesca's Holdings Corporation, through its subsidiary, Francesca's Collections, Inc., operates a chain of retail boutiques. The company offers a selection of fashion apparel, jewelry, accessories, and gifts primarily to its female customers. Francescas Holdings has a market cap of $1.3 billion and is part of the services sector. The company has a P/E ratio of 27.5, above the S&P 500 P/E ratio of 17.7. Shares are up 11.2% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Francescas Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Francescas Holdings as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the negative front, Build-A-Bear Workshop ( BBW), down 5.1%, West Marine ( WMAR), down 5.0%, Lithia Motors ( LAD), down 4.8% and Books-A-Million ( BAMM), down 3.9% , were all laggards within the specialty retail industry with Tiffany ( TIF) being today's specialty retail industry laggard.

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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