KAR Auction Services Inc. (KAR): Today's Featured Specialty Retail Laggard

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.

KAR Auction Services ( KAR) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 1.1%. By the end of trading, KAR Auction Services fell $0.37 (-1.3%) to $27.66 on average volume. Throughout the day, 2,219,034 shares of KAR Auction Services exchanged hands as compared to its average daily volume of 1,569,600 shares. The stock ranged in price between $27.64-$28.24 after having opened the day at $28.15 as compared to the previous trading day's close of $28.03. Other companies within the Specialty Retail industry that declined today were: Lentuo International ( LAS), down 5.6%, DGSE Companies ( DGSE), down 1.8%, Trans World Entertainment ( TWMC), down 1.8% and Cencosud ( CNCO), down 1.6%.

KAR Auction Services, Inc., together with its subsidiaries, provides vehicle auction services in North America. It operates in three segments: ADESA Auctions, IAA, and AFC. KAR Auction Services has a market cap of $3.9 billion and is part of the services sector. The company has a P/E ratio of 36.5, above the S&P 500 P/E ratio of 17.7. Shares are up 38.7% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate KAR Auction Services a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates KAR Auction Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Build-A-Bear Workshop ( BBW), up 9.7%, Odyssey Marine Exploration ( OMEX), up 5.2%, Titan Machinery ( TITN), up 3.9% and Lithia Motors ( LAD), up 3.6% , were all gainers within the specialty retail industry with CarMax ( KMX) 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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