Family Dollar Stores Inc. (FDO): Today's Featured 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.

Family Dollar Stores ( FDO) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Family Dollar Stores fell $0.89 (-1.4%) to $63.02 on average volume. Throughout the day, 2,538,131 shares of Family Dollar Stores exchanged hands as compared to its average daily volume of 1,907,700 shares. The stock ranged in price between $62.95-$64.32 after having opened the day at $64.27 as compared to the previous trading day's close of $63.91. Other companies within the Retail industry that declined today were: Acorn International ( ATV), down 6.2%, LightInTheBox ( LITB), down 5.7%, Vipshop Holdings ( VIPS), down 5.4% and ValueVision Media ( VVTV), down 4.0%.

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 $7.3 billion and is part of the services sector. Shares are down 0.8% year to date as of the close of trading on Thursday. Currently there are no analysts that rate Family Dollar Stores a buy, 6 analysts rate it a sell, and 13 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, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Big Lots ( BIG), up 23.0%, U.S. Auto Parts Network ( PRTS), up 12.2%, dELiA*s ( DLIA), up 11.8% and Stage Stores ( SSI), up 8.9% , were all gainers within the retail industry with Macy's ( M) being today's featured retail industry leader.

For investors not wanting singular stock exposure, 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).

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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