Ross Stores Inc. (ROST): 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.

Ross Stores ( ROST) 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, Ross Stores rose $1.18 (2%) to $60.29 on heavy volume. Throughout the day, 3.7 million shares of Ross Stores exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $58.74-$62.07 after having opened the day at $58.74 as compared to the previous trading day's close of $59.11. Other companies within the Services sector that increased today were: Caesars Entertainment ( CZR), up 18.6%, Ark Restaurants ( ARKR), up 17.6%, DeVry ( DV), up 16.4%, and WidePoint Corporation ( WYY), up 15.9%.
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Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. Ross Stores has a market cap of $13.25 billion and is part of the retail industry. The company has a P/E ratio of 18, above the S&P 500 P/E ratio of 17.7. Shares are up 10.2% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Ross Stores a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Ross Stores 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, revenue growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Sport Chalet ( SPCHA), down 22.7%, Rand Logistics ( RLOG), down 16.9%, Ambassadors Group ( EPAX), down 16.1%, and Bon-Ton Stores ( BONT), down 15.3%, were all laggards within the services sector with Bed Bath & Beyond ( BBBY) 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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