Limited Brands Inc. (LTD): 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.

Limited Brands ( LTD) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole was unchanged today. By the end of trading, Limited Brands fell 55 cents (-1.2%) to $45.26 on average volume. Throughout the day, three million shares of Limited Brands exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in price between $45.25-$46.04 after having opened the day at $45.53 as compared to the previous trading day's close of $45.81. Other companies within the Services sector that declined today were: iParty Corporation ( IPT), down 12.5%, General Employment ( JOB), down 11.3%, Caesars Entertainment ( CZR), down 9.5%, and Envoy Capital Group ( ECGI), down 8.1%.
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Limited Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty, and personal care products and accessories primarily in the United States and Canada. Limited Brands has a market cap of $13.17 billion and is part of the retail industry. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are down 2.9% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Limited Brands a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Limited Brands as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow.

On the positive front, Starz ( STRZB), up 12.8%, Liberty Capital ( LCPBD), up 12.8%, Innovaro ( INV), up 11.8%, and Radio One Inc. Class D ( ROIAK), up 10.8%, were all gainers within the services sector with Canadian Pacific Railway ( CP) 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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