Chico's FAS Inc. (CHS): 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.

Chico's FAS ( CHS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.6%. By the end of trading, Chico's FAS fell 72 cents (-3.9%) to $17.77 on heavy volume. Throughout the day, six million shares of Chico's FAS exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in price between $17.52-$18.48 after having opened the day at $18.43 as compared to the previous trading day's close of $18.49. Other companies within the Services sector that declined today were: 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%.
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Chico's FAS, Inc., together with its subsidiaries, operates as a specialty retailer of private branded, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing items in the United States. Chico's FAS has a market cap of $3.08 billion and is part of the retail industry. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7. Shares are up 0.2% year to date as of the close of trading on Friday. Currently there are five analysts that rate Chico's FAS a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Chico's FAS as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, 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%, were all gainers within the services sector with AutoZone ( AZO) 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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