Target Corp (TGT): 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.

Target ( TGT) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 1.2%. By the end of trading, Target rose 82 cents (1.3%) to $61.86 on average volume. Throughout the day, 4.8 million shares of Target exchanged hands as compared to its average daily volume of five million shares. The stock ranged in a price between $61.23-$62.14 after having opened the day at $61.30 as compared to the previous trading day's close of $61.04. Other companies within the Services sector that increased today were: Liberty Media Corporation ( LMCB), up 595.5%, Netflix ( NFLX), up 42.2%, Swift Transportation ( SWFT), up 28.4%, and ITT Educational Services ( ESI), up 17.7%.
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Target Corporation operates general merchandise stores in the United States. Target has a market cap of $40.02 billion and is part of the retail industry. The company has a P/E ratio of 13.7, below the S&P 500 P/E ratio of 17.7. Shares are up 4% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Target a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Target 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, increase in net income, revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, FreeSeas ( FREE), down 13%, QKL Stores ( QKLS), down 9%, DLH Holdings ( DLHC), down 8.9%, and Newlead Holdings ( NEWL), down 8.6%, were all laggards within the services sector with Fiserv ( FISV) 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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