Lowe's Companies Inc. (LOW): 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.

Lowe's Companies ( LOW) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 1.1%. By the end of trading, Lowe's Companies rose $1.12 (3.1%) to $37.71 on heavy volume. Throughout the day, 17.3 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 9.6 million shares. The stock ranged in a price between $36.46-$37.80 after having opened the day at $36.48 as compared to the previous trading day's close of $36.59. Other companies within the Services sector that increased today were: FreeSeas ( FREE), up 27.8%, Casual Male Retail Group ( DXLG), up 27.2%, Casual Male Retail Group ( CMRG), up 27.2%, and Chanticleer Holdings ( HOTR), up 21.5%.
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Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer. It offers a range of products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $40.33 billion and is part of the retail industry. The company has a P/E ratio of 21.2, above the S&P 500 P/E ratio of 17.7. Shares are up 3% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Lowe's Companies a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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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