Gap Inc. (GPS): 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.

Gap ( GPS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Gap fell 69 cents (-1.9%) to $35.47 on light volume. Throughout the day, 3.2 million shares of Gap exchanged hands as compared to its average daily volume of 6.2 million shares. The stock ranged in price between $35.10-$35.78 after having opened the day at $35.75 as compared to the previous trading day's close of $36.16. Other companies within the Services sector that declined today were: Lawson Products ( LAWS), down 9.1%, SUPERVALU ( SVU), down 8.8%, SearchMedia Holdings ( IDI), down 8.4%, and Vitran Corporation ( VTNC), down 8.4%.
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The Gap, Inc. operates as a specialty retailer. The company offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brand names. Gap has a market cap of $17.49 billion and is part of the retail industry. The company has a P/E ratio of 20.3, equal to the average retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 96.1% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Gap a buy, two analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Gap as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, DS Torm ( TRMD), up 26.7%, Innovaro ( INV), up 20.2%, Overseas Shipholding Group ( OSG), up 17.1%, and Seanergy Maritime Holdings ( SHIP), up 16.1%, were all gainers within the services sector with US Airways Group ( LCC) 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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