J.C. Penney Co Inc (JCP): 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.

J.C. Penney ( JCP) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.8%. By the end of trading, J.C. Penney fell $1.45 (-5.7%) to $24.01 on average volume. Throughout the day, 7.3 million shares of J.C. Penney exchanged hands as compared to its average daily volume of 8.2 million shares. The stock ranged in price between $23.93-$25.61 after having opened the day at $25.40 as compared to the previous trading day's close of $25.46. Other companies within the Services sector that declined today were: Western Union Company ( WU), down 29%, Charm Communications ( CHRM), down 23%, Central European Media ( CETV), down 19.2%, and Shengkai Innovations ( VALV), down 14.6%.
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J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. J.C. Penney has a market cap of $5.58 billion and is part of the retail industry. Shares are down 27.6% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate J.C. Penney a buy, two analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates J.C. Penney as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

On the positive front, China HGS Real Estate ( HGSH), up 175%, Schiff Nutrition International ( SHF), up 45.9%, Red Robin Gourmet Burgers ( RRGB), up 21.5%, and Oxygen Biotherapeutics ( OXBT), up 15.4%, were all gainers within the services sector with Wynn Resorts ( WYNN) 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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