3 Stocks Pushing The Specialty Retail Industry Lower

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The Specialty Retail industry as a whole closed the day down 1.3% versus the S&P 500, which was down 0.5%. Laggards within the Specialty Retail industry included Perfumania Holdings ( PERF), down 3.2%, China Auto Logistics ( CALI), down 1.7%, Mecox Lane ( MCOX), down 5.6%, PCM ( PCMI), down 1.9% and Lentuo International ( LAS), down 4.4%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

PCM ( PCMI) is one of the companies that pushed the Specialty Retail industry lower today. PCM was down $0.22 (1.9%) to $11.60 on average volume. Throughout the day, 19,508 shares of PCM exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in price between $11.51-$11.73 after having opened the day at $11.73 as compared to the previous trading day's close of $11.82.

PCM, Inc. operates as a multi-vendor provider of technology products, services, and solutions to commercial businesses; state, local, and federal governments; and educational institutions and individual consumers primarily in the United States. PCM has a market cap of $146.2 million and is part of the services sector. Shares are up 15.1% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates PCM as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on PCMI go as follows:

  • PCM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PCM INC increased its bottom line by earning $0.69 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.69).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 133.6% when compared to the same quarter one year prior, rising from $1.24 million to $2.89 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, PCM INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for PCM INC is rather low; currently it is at 15.75%. Regardless of PCMI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.85% trails the industry average.

You can view the full analysis from the report here: PCM Ratings Report

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