TJX Companies (TJX): Today's Featured Services Winner

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 higher today making it today's featured services winner. The sector as a whole closed the day up 0.8%. By the end of trading, TJX Companies rose 95 cents (2.2%) to $44.04 on average volume. Throughout the day, 5.6 million shares of TJX Companies exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in a price between $42.84-$44.12 after having opened the day at $43.06 as compared to the previous trading day's close of $43.09. Other companies within the Services sector that increased today were: SuperMedia ( SPMD), up 20.5%, KIT Digital ( KITD), up 16.3%, Rada Electronics Industries ( RADA), up 15.6%, and Sinclair Broadcast Group ( SBGI), up 13.1%.
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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 $32.03 billion and is part of the retail industry. The company has a P/E ratio of 19, above the S&P 500 P/E ratio of 17.7. Shares are up 34.8% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate TJX Companies a buy, no analysts rate it a sell, and nine 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Universal Technical Institute ( UTI), down 28.1%, Fresh Market ( TFM), down 12.4%, CAI International ( CAP), down 11.1%, and Genetic Technologies ( GENE), down 10.8%, were all laggards within the services sector with Lumber Liquidators Holdings ( LL) being today's services sector laggard.

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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