Kroger Co (KR): 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

Kroger ( KR) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 1.3%. By the end of trading, Kroger fell $0.92 (-2.7%) to $33.03 on average volume. Throughout the day, 5,101,738 shares of Kroger exchanged hands as compared to its average daily volume of 3,800,300 shares. The stock ranged in price between $32.84-$33.98 after having opened the day at $33.85 as compared to the previous trading day's close of $33.95. Other companies within the Retail industry that declined today were: Orchard Supply Hardware ( OSH), down 22.6%, China Jo-Jo Drugstores ( CJJD), down 8.2%, Christopher & Banks Corporation ( CBK), down 6.4% and ValueVision Media ( VVTV), down 6.1%.
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The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. The company also manufactures and processes food for sale in its supermarkets. It operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores. Kroger has a market cap of $17.6 billion and is part of the services sector. The company has a P/E ratio of 12.2, below the S&P 500 P/E ratio of 17.7. Shares are up 30.5% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Kroger a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Kroger as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, E-Commerce China Dangdang ( DANG), down 6.7%, Dollar General Corporation ( DG), down 3.2%, Fresh Market ( TFM), down 2.4% and Bed Bath & Beyond ( BBBY), down 2.0% , were all gainers within the retail industry with Walgreen Company ( WAG) 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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