GNC Acquisition Holdings Inc (GNC): 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.

GNC Acquisition Holdings ( GNC) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.1%. By the end of trading, GNC Acquisition Holdings fell $1.59 (-3.9%) to $38.72 on average volume. Throughout the day, 2.6 million shares of GNC Acquisition Holdings exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $38.31-$40.34 after having opened the day at $39.91 as compared to the previous trading day's close of $40.31. Other companies within the Services sector that declined today were: Overseas Shipholding Group ( OSG), down 62.1%, American Learning ( ALRN), down 13.2%, Point.360 ( PTSX), down 11.2%, and Innovaro ( INV), down 10.3%.
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GNC Holdings, Inc. operates as a specialty retailer of health and wellness products. Its products include vitamins, minerals, and herbal supplement products, as well as sports nutrition and diet products. GNC Acquisition Holdings has a market cap of $4.2 billion and is part of the retail industry. The company has a P/E ratio of 19.7, below the average retail industry P/E ratio of 19.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 39.2% year to date as of the close of trading on Friday. Currently there are eight analysts that rate GNC Acquisition Holdings a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates GNC Acquisition Holdings as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the positive front, SUPERVALU ( SVU), up 44.8%, Shengkai Innovations ( VALV), up 11.7%, Newlead Holdings ( NEWL), up 11.4%, and Oxygen Biotherapeutics ( OXBT), up 9.5%, were all gainers within the services sector with United Continental Holdings ( UAL) 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).

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