Sothebys (BID): 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.

Sothebys ( BID) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole closed the day down 1.3%. By the end of trading, Sothebys rose $0.90 (1.8%) to $50.94 on heavy volume. Throughout the day, 3,786,459 shares of Sothebys exchanged hands as compared to its average daily volume of 1,228,900 shares. The stock ranged in a price between $50.00-$52.00 after having opened the day at $50.08 as compared to the previous trading day's close of $50.04. Other companies within the Specialty Retail industry that increased today were: Lentuo International ( LAS), up 5.0%, Books-A-Million ( BAMM), up 4.3%, Outerwall ( OUTR), up 1.9% and Five Below ( FIVE), up 1.7%.

Sotheby's operates as an auctioneer of authenticated fine art, decorative art, and jewelry. The company operates in three segments: Auction, Finance, and Dealer. Sothebys has a market cap of $3.3 billion and is part of the services sector. Shares are up 43.3% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Sothebys a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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

On the negative front, Zale Corporation ( ZLC), down 7.0%, CSS Industries ( CSS), down 4.7%, West Marine ( WMAR), down 4.6% and Charles & Colvard ( CTHR), down 3.9% , were all laggards within the specialty retail industry with Netflix ( NFLX) 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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