5. CONSUMER SERVICES
Top Pick: Kohl's (KSS) operates department stores. Second-quarter profit stretched 13% to $260 million, or 84 cents a share, as revenue grew 7.7% to $4.1 billion. The operating margin inched up to 11%. Kohl's has $2.5 billion of cash and $2 billion of debt, translating to a quick ratio of 0.9 and a debt-to-equity ratio of 0.2. Its stock sells for a trailing earnings multiple of 15, a forward earnings multiple of 13, a book value multiple of 1.9 and a cash flow multiple of 8.8 -- 15%, 28%, 25% and 48% discounts to industry averages. Around 84% of analysts rank it "buy."
Bullish Scenario: Citigroup (C) expects Kohl's shares to gain another 29% to $68.
Three More Top-Ranked Consumer Services Stocks:Wyndham Worldwide (WYN) Omnicom Group (OMC) Interpublic Group (IPG)
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV