CVS Caremark Corp (CVS): 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.

CVS Caremark ( CVS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 1.4%. By the end of trading, CVS Caremark fell 82 cents (-1.8%) to $45.41 on heavy volume. Throughout the day, 9.4 million shares of CVS Caremark exchanged hands as compared to its average daily volume of 5.9 million shares. The stock ranged in price between $45.39-$46.40 after having opened the day at $46.26 as compared to the previous trading day's close of $46.23. Other companies within the Services sector that declined today were: InfoSonics Corporation ( IFON), down 17.1%, Radiant Logistics ( RLGT), down 16.1%, Good Times Restaurants ( GTIM), down 13.3%, and Caesars Entertainment ( CZR), down 11.7%.
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CVS Caremark Corporation provides pharmacy health care services in the United States. CVS Caremark has a market cap of $57.66 billion and is part of the retail industry. The company has a P/E ratio of 15.6, below the S&P 500 P/E ratio of 17.7. Shares are up 13.4% year to date as of the close of trading on Tuesday. Currently there are 17 analysts that rate CVS Caremark a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates CVS Caremark as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

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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