CVS Caremark Corp (CVS): Today's Featured 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

CVS Caremark ( CVS) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 1.1%. By the end of trading, CVS Caremark rose $0.64 (1.1%) to $57.87 on light volume. Throughout the day, 4,127,292 shares of CVS Caremark exchanged hands as compared to its average daily volume of 5,872,900 shares. The stock ranged in a price between $56.64-$57.88 after having opened the day at $57.22 as compared to the previous trading day's close of $57.23. Other companies within the Retail industry that increased today were: Orchard Supply Hardware ( OSH), up 24.5%, Conn's ( CONN), up 11.3%, China Jo-Jo Drugstores ( CJJD), up 7.4% and Christopher & Banks Corporation ( CBK), up 6.7%.
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CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. CVS Caremark has a market cap of $70.4 billion and is part of the services sector. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. Shares are up 18.4% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate CVS Caremark a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates CVS Caremark as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Ascena Retail Group ( ASNA), down 8.7%, Sears Hometown & Outlet Stores ( SHOS), down 4.1%, QKL Stores ( QKLS), down 4.1% and Village Super Market ( VLGEA), down 2.6% , were all laggards within the retail industry with L Brands ( LTD) being today's retail industry laggard.

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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