J.C. Penney Co Inc (JCP): 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.

J.C. Penney ( JCP) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 1.5%. By the end of trading, J.C. Penney rose 58 cents (3%) to $20.19 on heavy volume. Throughout the day, 14.7 million shares of J.C. Penney exchanged hands as compared to its average daily volume of 9.1 million shares. The stock ranged in a price between $19.67-$20.91 after having opened the day at $19.77 as compared to the previous trading day's close of $19.61. Other companies within the Services sector that increased today were: NetSpend Holdings ( NTSP), up 28.6%, China Yida ( CNYD), up 11.1%, CIBT Education Group ( MBA), up 9.7%, and PokerTek ( PTEK), up 9.5%.
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J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. J.C. Penney has a market cap of $4.34 billion and is part of the retail industry. Shares are up 0.5% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate J.C. Penney a buy, five analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates J.C. Penney as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself, generally high debt management risk and feeble growth in its earnings per share.

On the negative front, Millennial Media ( MM), down 37.5%, Office Depot ( ODP), down 16.7%, Town Sports International Holdings ( CLUB), down 13.1%, and Orchard Supply Hardware ( OSH), down 12.3%, were all laggards within the services sector with Lowe's Companies ( LOW) 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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