Outerwall Inc (OUTR): Today's Featured Specialty Retail Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Outerwall ( OUTR) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole closed the day down 0.5%. By the end of trading, Outerwall rose $0.66 (1.4%) to $49.00 on heavy volume. Throughout the day, 1,339,987 shares of Outerwall exchanged hands as compared to its average daily volume of 850,700 shares. The stock ranged in a price between $48.00-$49.10 after having opened the day at $48.24 as compared to the previous trading day's close of $48.34. Other companies within the Specialty Retail industry that increased today were: Zale Corporation ( ZLC), up 4.5%, Zagg ( ZAGG), up 4.5%, China Auto Logistics ( CALI), up 4.2% and Sport Chalet ( SPCHA), up 2.8%.

Outerwall Inc., through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom. Outerwall has a market cap of $1.3 billion and is part of the services sector. Shares are down 8.2% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Outerwall a buy, 3 analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Outerwall as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, 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, Copart ( CPRT), down 8.9%, CarMax ( KMX), down 3.8%, EZCorp ( EZPW), down 3.5% and Mecox Lane ( MCOX), down 3.4% , were all laggards within the specialty retail industry with Tiffany ( TIF) being today's specialty retail industry laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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