Saks Incorporated (SKS): Today's Featured 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

Saks Incorporated ( SKS) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Saks Incorporated fell $0.25 (-1.7%) to $14.43 on light volume. Throughout the day, 1,691,417 shares of Saks Incorporated exchanged hands as compared to its average daily volume of 2,678,700 shares. The stock ranged in price between $14.36-$14.80 after having opened the day at $14.68 as compared to the previous trading day's close of $14.68. Other companies within the Retail industry that declined today were: Orchard Supply Hardware Class A ( OSH), down 18.0%, Liberty Interactive ( LINTB), down 3.1%, Cache ( CACH), down 2.9% and Natural Grocers by Vitamin Cottage ( NGVC), down 1.7%.
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Saks Incorporated operates retail stores in the United States. The company’s retail stores offer an assortment of fashion apparel, shoes, accessories, jewelry, cosmetics, and gifts. Saks Incorporated has a market cap of $2.2 billion and is part of the services sector. The company has a P/E ratio of 40.4, above the S&P 500 P/E ratio of 17.7. Shares are up 39.7% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates Saks Incorporated a buy, 2 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Saks Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Acorn International ( ATV), down 11.1%, ALCO Stores ( ALCS), down 6.5%, QKL Stores ( QKLS), down 5.7% and New York & Company ( NWY), down 5.3% , were all gainers within the retail industry with Wal-Mart Stores ( WMT) being today's featured retail industry leader.

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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