Gap Inc. (GPS): 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.

Gap ( GPS) 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, Gap rose 57 cents (1.8%) to $31.79 on average volume. Throughout the day, 4.6 million shares of Gap exchanged hands as compared to its average daily volume of six million shares. The stock ranged in a price between $31.28-$31.99 after having opened the day at $31.39 as compared to the previous trading day's close of $31.22. Other companies within the Services sector that increased today were: Point.360 ( PTSX), up 50%, SED International Holdings ( SED), up 13.6%, Haverty Furniture Companies CL A ( HVT.A), up 11.9%, and Willdan Group ( WLDN), up 10.9%.
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The Gap, Inc. operates as a specialty retailer. The company offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brand names. Gap has a market cap of $15.32 billion and is part of the retail industry. The company has a P/E ratio of 15.7, below the S&P 500 P/E ratio of 17.7. Shares are up 3% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Gap a buy, two analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Gap as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Rada Electronics Industries ( RADA), down 21.1%, Vitamin Shoppe ( VSI), down 18.6%, Heidrick & Struggles International ( HSII), down 17.7%, and Fortune Industries ( FFI), down 13.2%, were all laggards within the services sector with Sears Holdings Corporation ( SHLD) 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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