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.
Home Depot (
HD) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 1.1%. By the end of trading, Home Depot rose $1.25 (2%) to $63.31 on average volume. Throughout the day, 8.1 million shares of Home Depot exchanged hands as compared to its average daily volume of 8.3 million shares. The stock ranged in a price between $61.99-$63.34 after having opened the day at $62.15 as compared to the previous trading day's close of $62.06. Other companies within the Services sector that increased today were:
Caribou Coffee Company (
CBOU), up 30.7%,
Xueda Education Group (
XUE), up 30.3%,
MTR Gaming Group (
MNTG), up 15.1%, and
China Armco Metals (
CNAM), up 12.5%.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
The Home Depot, Inc., together with its subsidiaries, operates as a home improvement retailer. The company's stores sell building materials, and home improvement and lawn and garden products to do-it-yourself, do-it-for-me (at D-I-F-M), and professional customers. Home Depot has a market cap of $93.31 billion and is part of the retail industry. The company has a P/E ratio of 22.1, above the S&P 500 P/E ratio of 17.7. Shares are up 47.6% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Home Depot a buy, no analysts rate it a sell, and 12 rate it a hold.
TheStreet Ratings rates Home Depot as a
buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
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).
Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.
