Best Buy Co Inc (BBY): 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.

Best Buy ( BBY) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.8%. By the end of trading, Best Buy fell 39 cents (-2.2%) to $17.02 on light volume. Throughout the day, 5.1 million shares of Best Buy exchanged hands as compared to its average daily volume of 10.5 million shares. The stock ranged in price between $16.96-$17.41 after having opened the day at $17.40 as compared to the previous trading day's close of $17.41. Other companies within the Services sector that declined today were: CIBT Education Group ( MBA), down 16.1%, Frontline ( FRO), down 13.4%, FreeSeas ( FREE), down 10.4%, and Hastings Entertainment ( HAST), down 6.3%.
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Best Buy Co., Inc. operates as a retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Best Buy has a market cap of $5.83 billion and is part of the retail industry. Shares are up 45.6% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Best Buy a buy, two analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Best Buy as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

On the positive front, Rada Electronics Industries ( RADA), up 40.6%, Infoblox ( BLOX), up 18.1%, Shutterstock ( SSTK), up 17.1%, and Innovaro ( INV), up 12.5%, were all gainers within the services sector with Starbucks Corporation ( SBUX) 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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