3 Stocks Dragging The Specialty Retail Industry Downward

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 87 points (-0.6%) at 14,874 as of Thursday, June 6, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,317 issues advancing vs. 1,603 declining with 125 unchanged.

The Specialty Retail industry currently is unchanged today versus the S&P 500, which is down 0.38. On the negative front, top decliners within the industry include Netflix ( NFLX), down 3.51, and Cencosud ( CNCO), down 0.91.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Luxottica Group ( LUX) is one of the companies pushing the Specialty Retail industry lower today. As of noon trading, Luxottica Group is down $0.55 (-1.1%) to $50.15 on average volume Thus far, 46,703 shares of Luxottica Group exchanged hands as compared to its average daily volume of 75,500 shares. The stock has ranged in price between $49.85-$50.95 after having opened the day at $50.79 as compared to the previous trading day's close of $50.70.

Luxottica Group S.p.A., together with its subsidiaries, provides luxury and sports eyewear worldwide. The company operates in two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. Luxottica Group has a market cap of $24.5 billion and is part of the services sector. The company has a P/E ratio of 44.9, above the S&P 500 P/E ratio of 17.7. Shares are up 22.6% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Luxottica Group a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Luxottica Group as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Luxottica Group Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Francescas Holdings ( FRAN) is down $2.81 (-9.3%) to $27.28 on heavy volume Thus far, 3.3 million shares of Francescas Holdings exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $26.58-$27.99 after having opened the day at $27.50 as compared to the previous trading day's close of $30.09.

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 28.1, above the S&P 500 P/E ratio of 17.7. Shares are up 13.9% year to date as of the close of trading on Wednesday. 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. Get the full Francescas Holdings Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Tiffany ( TIF) is down $0.74 (-0.9%) to $77.09 on light volume Thus far, 335,402 shares of Tiffany exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $76.74-$77.95 after having opened the day at $77.64 as compared to the previous trading day's close of $77.83.

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 $10.1 billion and is part of the services sector. The company has a P/E ratio of 24.2, above the S&P 500 P/E ratio of 17.7. Shares are up 35.7% year to date as of the close of trading on Wednesday. Currently there are 5 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, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Tiffany Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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