Francescas Holdings Corp (FRAN): 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

Francescas Holdings ( FRAN) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Francescas Holdings fell $0.43 (-1.6%) to $25.77 on average volume. Throughout the day, 1,056,923 shares of Francescas Holdings exchanged hands as compared to its average daily volume of 1,300,700 shares. The stock ranged in price between $25.48-$26.67 after having opened the day at $26.56 as compared to the previous trading day's close of $26.20. Other companies within the Specialty Retail industry that declined today were: Sport Chalet ( SPCHB), down 4.1%, Odyssey Marine Exploration ( OMEX), down 3.6%, Hollywood Media Corporation ( HOLL), down 3.5% and Sport Chalet ( SPCHA), down 3.5%.
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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 $1.2 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 1.6% year to date as of the close of trading on Friday. 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 also find weaknesses including a generally disappointing performance in the stock itself and premium valuation.

On the positive front, Netflix ( NFLX), down 7.1%, Zale Corporation ( ZLC), down 5.5%, 1-800 Flowers.com ( FLWS), down 5.2% and Blue Nile ( NILE), down 4.8% , were all gainers within the specialty retail industry with Copart ( CPRT) being today's featured specialty retail industry leader.

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).

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

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