GameStop Corp (GME): 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.

GameStop ( GME) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.1%. By the end of trading, GameStop rose 71 cents (3.2%) to $23.08 on average volume. Throughout the day, four million shares of GameStop exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in a price between $22.39-$23.48 after having opened the day at $22.49 as compared to the previous trading day's close of $22.37. Other companies within the Services sector that increased today were: Innovaro ( INV), up 14%, CIBT Education Group ( MBA), up 11.8%, Oxygen Biotherapeutics ( OXBT), up 11.4%, and Good Times Restaurants ( GTIM), up 10.8%.
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GameStop Corp. operates as a video game retailer. GameStop has a market cap of $2.63 billion and is part of the retail industry. The company has a P/E ratio of 9.1, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 11.7% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate GameStop a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates GameStop as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

On the negative front, Cache ( CACH), down 15.7%, VirtualScopics ( VSCP), down 14.1%, Mecox Lane ( MCOX), down 11.7%, and CTPartners Executive Search ( CTP), down 11%, 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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