Kohl's Corp (KSS): 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.

Kohl's ( KSS) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.3%. By the end of trading, Kohl's rose 54 cents (1.2%) to $46.60 on light volume. Throughout the day, 2.3 million shares of Kohl's exchanged hands as compared to its average daily volume of 3.7 million shares. The stock ranged in a price between $46.08-$46.61 after having opened the day at $46.30 as compared to the previous trading day's close of $46.06. Other companies within the Services sector that increased today were: RPX ( RPXC), up 22.1%, Innovaro ( INV), up 20.2%, ALCO Stores ( ALCS), up 17.6%, and iParty Corporation ( IPT), up 12.6%.
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Kohl's Corporation operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. Kohl's has a market cap of $10.61 billion and is part of the retail industry. The company has a P/E ratio of 10.8, below the S&P 500 P/E ratio of 17.7. Shares are up 7.3% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Kohl's a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Kohl's as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and disappointing return on equity.

On the negative front, Learning Tree International ( LTRE), down 19.6%, China Metro-Rural Holdings ( CNR), down 15.3%, FreeSeas ( FREE), down 13.6%, and Nevada Gold & Casinos ( UWN), down 10.8%, were all laggards within the services sector with Carnival Corporation ( CCL) 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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