5 Stocks Dragging The Retail Industry Downward

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 156 points (1.0%) at 15,978 as of Friday, Dec. 6, 2013, 11:45 AM ET. The NYSE advances/declines ratio sits at 2,203 issues advancing vs. 732 declining with 103 unchanged.

The Retail industry currently sits up 0.4% versus the S&P 500, which is up 0.9%. A company within the industry that fell today was Michael Kors Holdings ( KORS), up 1.7%. Top gainers within the industry include Lowe's Companies ( LOW), up 2.6%, eBay ( EBAY), up 1.8% and Walgreen Company ( WAG), up 0.8%.

TheStreet would like to highlight 5 stocks pushing the industry lower today:

5. Big Lots ( BIG) is one of the companies pushing the Retail industry lower today. As of noon trading, Big Lots is down $5.02 (-13.5%) to $32.10 on heavy volume. Thus far, 3.6 million shares of Big Lots exchanged hands as compared to its average daily volume of 480,100 shares. The stock has ranged in price between $32.00-$34.25 after having opened the day at $34.05 as compared to the previous trading day's close of $37.13.

Big Lots, Inc., through its subsidiaries, operates as a broadline closeout retailer in the United States and Canada. Big Lots has a market cap of $2.2 billion and is part of the services sector. The company has a P/E ratio of 13.3, below the S&P 500 P/E ratio of 17.7. Shares are up 30.5% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Big Lots a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Big Lots as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full Big Lots Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, American Eagle Outfitters ( AEO) is down $1.40 (-8.5%) to $15.00 on heavy volume. Thus far, 7.4 million shares of American Eagle Outfitters exchanged hands as compared to its average daily volume of 4.3 million shares. The stock has ranged in price between $14.76-$16.17 after having opened the day at $15.96 as compared to the previous trading day's close of $16.40.

American Eagle Outfitters, Inc., together with its subsidiaries, operates as an apparel and accessories retailer in the United States and Canada. American Eagle Outfitters has a market cap of $3.1 billion and is part of the services sector. The company has a P/E ratio of 14.4, below the S&P 500 P/E ratio of 17.7. Shares are down 20.0% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate American Eagle Outfitters a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates American Eagle Outfitters as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full American Eagle Outfitters Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Family Dollar Stores ( FDO) is down $2.10 (-3.1%) to $65.50 on heavy volume. Thus far, 966,331 shares of Family Dollar Stores exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $65.20-$66.99 after having opened the day at $66.92 as compared to the previous trading day's close of $67.60.

Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low- and middle-income consumers in the United States. Family Dollar Stores has a market cap of $8.0 billion and is part of the services sector. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are up 6.6% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Family Dollar Stores a buy, 2 analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Family Dollar Stores 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, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Family Dollar Stores Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Gap ( GPS) is down $0.84 (-2.1%) to $39.40 on heavy volume. Thus far, 4.0 million shares of Gap exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $38.83-$40.20 after having opened the day at $40.08 as compared to the previous trading day's close of $40.24.

The Gap, Inc. operates as an apparel retail company. It offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands worldwide. Gap has a market cap of $19.1 billion and is part of the services sector. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are up 29.6% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate Gap a buy, 1 analyst rates it a sell, and 15 rate it a hold.

TheStreet Ratings rates Gap 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, notable return on equity, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Gap Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, J.C. Penney ( JCP) is down $0.58 (-6.6%) to $8.26 on average volume. Thus far, 27.4 million shares of J.C. Penney exchanged hands as compared to its average daily volume of 42.6 million shares. The stock has ranged in price between $8.06-$8.63 after having opened the day at $8.59 as compared to the previous trading day's close of $8.85.

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. J.C. Penney has a market cap of $2.9 billion and is part of the services sector. Shares are down 55.1% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate J.C. Penney a buy, 4 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates J.C. Penney as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins. Get the full J.C. Penney Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 4 stocks, 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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