AutoZone Inc (AZO): 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.

AutoZone ( AZO) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.6%. By the end of trading, AutoZone rose $3.77 (1.1%) to $353.37 on average volume. Throughout the day, 400,187 shares of AutoZone exchanged hands as compared to its average daily volume of 462,600 shares. The stock ranged in a price between $347.20-$354.70 after having opened the day at $347.20 as compared to the previous trading day's close of $349.60. Other companies within the Services sector that increased today were: DLH Holdings ( DLHC), up 83.1%, CIBT Education Group ( MBA), up 24.1%, Daegis ( DAEG), up 18.6%, and Fortune Industries ( FFI), up 17.6%.
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AutoZone, Inc. engages in retailing and distributing automotive replacement parts and accessories. AutoZone has a market cap of $12.7 billion and is part of the retail industry. The company has a P/E ratio of 14.4, below the S&P 500 P/E ratio of 17.7. Shares are down 1.4% year to date as of the close of trading on Friday. Currently there are eight analysts that rate AutoZone a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates AutoZone as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Globus Maritime ( GLBS), down 13.9%, Innovaro ( INV), down 13.2%, Liberty Entertainment Group Series A ( LSTZA), down 10.7%, and Newlead Holdings ( NEWL), down 9.4%, were all laggards within the services sector with Chico's FAS ( CHS) 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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