Lowe's Companies Inc. (LOW): Today's Featured Services Winner

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.

Lowe's Companies ( LOW) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.4%. By the end of trading, Lowe's Companies rose 81 cents (3.1%) to $27.24 on average volume. Throughout the day, 20 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 16.2 million shares. The stock ranged in a price between $26.40-$27.34 after having opened the day at $26.40 as compared to the previous trading day's close of $26.43. Other companies within the Services sector that increased today were: QKL Stores ( QKLS), up 17.7%, Lentuo International ( LAS), up 16.3%, American Learning ( ALRN), up 13.6%, and SearchMedia Holdings ( IDI), up 12.8%.

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer. It offers a range of products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $31.09 billion and is part of the retail industry. The company has a P/E ratio of 17.2, below the average retail industry P/E ratio of 17.5 and below the S&P 500 P/E ratio of 17.7. Shares are up 9.8% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Lowe's Companies a buy, no analysts rate it a sell, and 10 rate it a hold.

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

On the negative front, China Auto Logistics ( CALI), down 14.6%, Willdan Group ( WLDN), down 12.3%, Express ( EXPR), down 11.1%, and Intersections ( INTX), down 9.8%, were all laggards within the services sector with Hertz Global Holdings ( HTZ) being today's services sector laggard.

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).
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