Lumber Liquidators Holdings Inc (LL): 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.

Lumber Liquidators Holdings ( LL) 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, Lumber Liquidators Holdings fell 78 cents (-1.4%) to $53.36 on average volume. Throughout the day, 757,901 shares of Lumber Liquidators Holdings exchanged hands as compared to its average daily volume of 649,300 shares. The stock ranged in price between $52.90-$54.77 after having opened the day at $54.18 as compared to the previous trading day's close of $54.14. Other companies within the Services sector that declined today were: 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%.
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Lumber Liquidators Holdings, Inc. operates as a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories in the United States. Lumber Liquidators Holdings has a market cap of $1.47 billion and is part of the retail industry. The company has a P/E ratio of 36.7, above the S&P 500 P/E ratio of 17.7. Shares are up 207.6% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate Lumber Liquidators Holdings a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Lumber Liquidators Holdings as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, 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%, were all gainers within the services sector with TJX Companies ( TJX) 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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