Target Corp (TGT): 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.

Target ( TGT) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 1.2%. By the end of trading, Target fell $1.10 (-1.7%) to $62.89 on light volume. Throughout the day, 2.1 million shares of Target exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $62.89-$64.06 after having opened the day at $63.91 as compared to the previous trading day's close of $63.99. Other companies within the Services sector that declined today were: General Employment ( JOB), down 14.4%, WidePoint Corporation ( WYY), down 13.6%, ENGlobal Corporation ( ENG), down 13.5%, and DS Torm ( TRMD), down 13.2%.
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Target Corporation operates general merchandise stores in the United States. Target has a market cap of $42.03 billion and is part of the retail industry. The company has a P/E ratio of 14.7, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 25.3% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Target a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Target as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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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