TJX Companies (TJX): 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.

TJX Companies ( TJX) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole was unchanged today. By the end of trading, TJX Companies fell 62 cents (-1.5%) to $40.73 on heavy volume. Throughout the day, 10.3 million shares of TJX Companies exchanged hands as compared to its average daily volume of 4.9 million shares. The stock ranged in price between $40.38-$41.50 after having opened the day at $41.43 as compared to the previous trading day's close of $41.35. Other companies within the Services sector that declined today were: Constant Contact ( CTCT), down 29.9%, HMS Holdings Corporation ( HMSY), down 23.4%, Regis Corporation ( RGS), down 16.3%, and Innovaro ( INV), down 16%.
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The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. TJX Companies has a market cap of $30.91 billion and is part of the retail industry. The company has a P/E ratio of 18.7, equal to the average retail industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 30.1% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate TJX Companies a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates TJX Companies as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, American Learning ( ALRN), up 27.5%, LodgeNet Interactive Corporation ( LNET), up 25.7%, DeVry ( DV), up 24.9%, and Stamps.com ( STMP), up 20.2%, were all gainers within the services sector with McGraw-Hill Companies Incorporated ( MHP) 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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