Safeway Inc. (SWY): 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

Safeway ( SWY) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day down 1.3%. By the end of trading, Safeway rose $0.28 (1.2%) to $23.31 on light volume. Throughout the day, 3,489,786 shares of Safeway exchanged hands as compared to its average daily volume of 5,301,700 shares. The stock ranged in a price between $22.78-$23.57 after having opened the day at $22.78 as compared to the previous trading day's close of $23.03. Other companies within the Retail industry that increased today were: GameStop ( GME), up 7.8%, Tuesday Morning Corporation ( TUES), up 4.8%, China Jo-Jo Drugstores ( CJJD), up 4.0% and Dollar General Corporation ( DG), up 2.6%.
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Safeway Inc., together with its subsidiaries, operates as a food and drug retailer in North America. Safeway has a market cap of $5.5 billion and is part of the services sector. The company has a P/E ratio of 9.2, below the S&P 500 P/E ratio of 17.7. Shares are up 27.3% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Safeway a buy, 3 analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Safeway as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, increase in net income, attractive valuation levels and notable return on equity. 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 negative front, Coastal Contacts ( COA), down 20.6%, Acorn International ( ATV), down 12.2%, QKL Stores ( QKLS), down 9.9% and Sears Hometown & Outlet Stores ( SHOS), down 8.8% , were all laggards within the retail industry with J.C. Penney ( JCP) 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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