Target Corp (TGT): 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.

Target ( TGT) 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, Target fell $1.70 (-2.6%) to $62.78 on heavy volume. Throughout the day, 6.4 million shares of Target exchanged hands as compared to its average daily volume of four million shares. The stock ranged in price between $62.59-$64.12 after having opened the day at $64.04 as compared to the previous trading day's close of $64.48. Other companies within the Services sector that declined today were: Seanergy Maritime Holdings ( SHIP), down 18.2%, KIT Digital ( KITD), down 16.2%, TOP Ships ( TOPS), down 12.8%, and Oxygen Biotherapeutics ( OXBT), down 11.1%.
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Target Corporation operates general merchandise stores in the United States. Target has a market cap of $41.73 billion and is part of the retail industry. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 24.4% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate Target a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Target as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Star Bulk Carriers ( SBLK), up 12.3%, Frisch's Restaurants ( FRS), up 11.3%, SuperMedia ( SPMD), up 11.3%, and Dex One ( DEXO), up 10.3%, were all gainers within the services sector with Kansas City Southern ( KSU) 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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