Gap Inc. (GPS): Today's Featured Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Gap (GPS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.8%. By the end of trading, Gap fell $1.26 (-3.6%) to $33.35 on average volume. Throughout the day, 7.6 million shares of Gap exchanged hands as compared to its average daily volume of 6.8 million shares. The stock ranged in price between $33.35-$34.83 after having opened the day at $34.69 as compared to the previous trading day's close of $34.61. Other companies within the Services sector that declined today were: Pointer Telocation (PNTR), down 13.2%, VisionChina Media (VISN), down 13.1%, Mecox Lane (MCOX), down 9.4%, and SinoHub (SIHI), down 9.3%.

• ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!

The Gap, Inc. operates as a specialty retailer. The company offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brand names. Gap has a market cap of $16.95 billion and is part of the retail industry. The company has a P/E ratio of 21.2, above the average retail industry P/E ratio of 21.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 86.6% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Gap a buy, two analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Gap as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

• You can view the full Gap Ratings Report.

On the positive front, AirMedia Group (AMCN), up 25.8%, Innovaro (INV), up 18.9%, Bioanalytical Systems (BASI), up 15.8%, and DS Torm (TRMD), up 14.6%, were all gainers within the services sector with Bed Bath & Beyond (BBBY) being today's featured services sector leader.

• Use our services section to find sector-relevant news.
• Or find some new ideas from our top rated stocks lists.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services (IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers (SCC).

• Find other investment ideas from our top rated ETFs lists.

For more information on Gap Inc. click any of the following:

• Gap Inc. Stock Price

• Gap Inc. Analyst Ratings

• Gap Inc. Key Stats & Profile

• Gap Inc. Earnings

• Gap Inc. Ratio Comparison

• Gap Inc. Growth Rates

• Gap Inc. Balance Sheet

• Gap Inc. Cash Flow

• Gap Inc. Income Statement