Michael Kors Holdings Ltd (KORS): Today's Featured Specialty 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

Michael Kors Holdings ( KORS) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Michael Kors Holdings fell $0.74 (-1.2%) to $60.53 on average volume. Throughout the day, 3,513,632 shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 4,001,600 shares. The stock ranged in price between $59.77-$61.73 after having opened the day at $61.48 as compared to the previous trading day's close of $61.27. Other companies within the Specialty Retail industry that declined today were: Barnes & Noble ( BKS), down 6.1%, Asbury Automotive Group ( ABG), down 4.1%, China Auto Logistics ( CALI), down 3.9% and MarineMax ( HZO), down 3.3%.
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Michael Kors Holdings Limited engages in the design, marketing, distribution, and retail of branded women's apparel and accessories, and men's apparel. The company sells its products primarily under the names of Michael Kors, MICHAEL KORS, MICHAEL MICHAEL KORS, and KORS MICHAEL KORS. Michael Kors Holdings has a market cap of $12.5 billion and is part of the services sector. The company has a P/E ratio of 31.6, above the S&P 500 P/E ratio of 17.7. Shares are up 20.1% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Michael Kors Holdings a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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

On the positive front, Hastings Entertainment ( HAST), down 7.5%, Hollywood Media Corporation ( HOLL), down 7.5%, Big 5 Sporting Goods Corporation ( BGFV), down 3.0% and DGSE Companies ( DGSE), down 3.0%.

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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