Retailer Wrap: Best Buy (BBY) Pulls Back, Big 5 (BGFV) and Cabela's (CAB)

NEW YORK (TheStreet) -- Best Buy (BBY) shares have backed-off from its year high set earlier this month after falling 1.2% to $37.54 as of 12 p.m. EST, lower than its mid-September high of $39.28. Best Buy shares are up 216% in 2013 compared to an 18% advance for the S&P 500 Index.

Best Buy's turnaround is largely credited to CEO Hubert Joly's successful strategic decisions over the year, including trimming $390 million in expenses from the balance sheet and making in-store space available to vendors Samsung and Microsoft  (MSFT). Market researcher ShopperTrak estimates a year-on-year 2.4% increase in holiday season retail sales for the upcoming period, with electronics stores such as Best Buy outperforming.

http://www.thestreet.com/story/12052038/1/jcpenney-crashed-best-buy-is-next.html

Sports retailer Big 5 Sporting Goods  (BGFV) has had a comparatively steadier 2013 with the share price up 22.2% in 2013 thanks to solid growth in sales. For the second quarter ended July 30, Big 5 reported an increase in net sales to $239.9 million, compared to $226.6 million for the year-ago quarter and same-store sales increased 4.4% over second quarter 2012. Big 5 shares were 0.12% lower to $16.04 as of 12 p.m. EST.

TheStreet Ratings team rates Big 5 Sporting Goods as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate Big 5 Sporting Goods a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

And, leisure and outdoor merchandise retailer Cabela's  (CAB) is trading 1.6% lower to $63.26 as of 12 p.m. EST. So far this year, Cabela's shares have risen 51.6%. Sales of guns and ammunition at Cabela's is expected to rise, as researcher IBISWorld anticipates an industry-wide 20% rise to $14.7 billion over 2013 in firearm sales. Cabela's is slated to report third quarter 2013 earnings on October 24.

TheStreet Ratings team rates Cabela's as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate Cabela's a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Written by Keris Alison Lahiff.

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