PetSmart Inc. (PETM): 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.

PetSmart ( PETM) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole closed the day up 1.4%. By the end of trading, PetSmart rose $0.89 (1.3%) to $69.80 on light volume. Throughout the day, 1,304,479 shares of PetSmart exchanged hands as compared to its average daily volume of 1,864,500 shares. The stock ranged in a price between $68.78-$69.90 after having opened the day at $69.05 as compared to the previous trading day's close of $68.91. Other companies within the Specialty Retail industry that increased today were: Build-A-Bear Workshop ( BBW), up 8.9%, TravelCenters of America ( TA), up 5.3%, Birks Group ( BGI), up 3.9% and DGSE Companies ( DGSE), up 3.7%.

PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada. PetSmart has a market cap of $6.8 billion and is part of the services sector. Shares are down 5.3% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate PetSmart a buy, 1 analyst rates it a sell, and 15 rate it a hold.

TheStreet Ratings rates PetSmart as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, 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 low profit margins.

On the negative front, Books-A-Million ( BAMM), down 2.5%, Charles & Colvard ( CTHR), down 2.1% and Odyssey Marine Exploration ( OMEX), down 1.8%.

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).

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