Abercrombie & Fitch Co. (ANF): 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.

Abercrombie & Fitch ( ANF) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.1%. By the end of trading, Abercrombie & Fitch rose $1.15 (2.3%) to $50.71 on light volume. Throughout the day, 1.9 million shares of Abercrombie & Fitch exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in a price between $49.42-$50.77 after having opened the day at $49.92 as compared to the previous trading day's close of $49.56. Other companies within the Services sector that increased today were: School Specialty ( SCHS), up 27.8%, USA Truck ( USAK), up 19.9%, Point.360 ( PTSX), up 10.8%, and Mastech Holdings ( MHH), up 10.4%.
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Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. Abercrombie & Fitch has a market cap of $4.03 billion and is part of the retail industry. The company has a P/E ratio of 37.5, above the S&P 500 P/E ratio of 17.7. Shares are up 5.5% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Abercrombie & Fitch a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Abercrombie & Fitch as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Shengkai Innovations ( VALV), down 11.3%, FreeSeas ( FREE), down 11.1%, Seanergy Maritime Holdings ( SHIP), down 9.3%, and New Oriental Education & Technology Group I ( EDU), down 8.6%, were all laggards within the services sector with Ross Stores ( ROST) 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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