Family Dollar Stores Inc. (FDO): 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.

Family Dollar Stores ( FDO) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.2%. By the end of trading, Family Dollar Stores rose 80 cents (1.4%) to $58.35 on average volume. Throughout the day, 2.2 million shares of Family Dollar Stores exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in a price between $57.34-$58.69 after having opened the day at $57.71 as compared to the previous trading day's close of $57.55. Other companies within the Services sector that increased today were: Globus Maritime ( GLBS), up 13.6%, iParty Corporation ( IPT), up 13.3%, Christopher & Banks Corporation ( CBK), up 12.9%, and Fortune Industries ( FFI), up 11.2%.
  • 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.

Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low- and middle-income consumers in the United States. Family Dollar Stores has a market cap of $6.56 billion and is part of the retail industry. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. Shares are down 10.7% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Family Dollar Stores a buy, two analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Family Dollar Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, CIBT Education Group ( MBA), down 17.7%, Bluefly ( BFLY), down 11.8%, WidePoint Corporation ( WYY), down 10.4%, and Green Dot ( GDOT), down 8.1%, were all laggards within the services sector with Expedia ( EXPE) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Starbucks' Howard Schultz Reveals the Sight of Feared Activist Carl Icahn Causes Him to Look Away

Here's What Carl Icahn Bought and Sold in the First Quarter

Dollar Tree Intends to Be 'Mindful' of New Price Slashing Campaigns By Walmart and Target

The Value of a Dollar (Tree)

Strategy for the Months Ahead; Twitter Will Fly Solo: Best of Kass