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.
Kohl's (
KSS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Kohl's fell 66 cents (-1.3%) to $52.02 on light volume. Throughout the day, 2.2 million shares of Kohl's exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in price between $51.90-$52.85 after having opened the day at $52.73 as compared to the previous trading day's close of $52.68. Other companies within the Services sector that declined today were:
K12 (
LRN), down 13.4%,
China HGS Real Estate (
HGSH), down 13.1%,
WidePoint Corporation (
WYY), down 12.6%, and
Seven Arts Entertainment (
SAPX), down 9.5%.
Kohl's Corporation operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. Kohl's has a market cap of $12.32 billion and is part of the
retail industry. The company has a P/E ratio of 12.6, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 6.4% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Kohl's a buy, no analysts rate it a sell, and eight rate it a hold.
TheStreet Ratings rates Kohl's as a
buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
On the positive front,
Ultrapetrol Bahamas (
ULTR), up 23.7%,
Amrep Corporation (
AXR), up 18.9%,
Digital Cinema Destinations (
DCIN), up 14.9%, and
Willdan Group (
WLDN), up 14.4%, were all gainers within the services sector with
Wynn Resorts (
WYNN) being today's featured services sector leader.
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).
FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge!
Free download now.
