Kohl's Corp (KSS): 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.

Kohl's ( KSS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Kohl's fell 51 cents (-1.1%) to $46.10 on heavy volume. Throughout the day, 7.7 million shares of Kohl's exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in price between $44.57-$46.64 after having opened the day at $45 as compared to the previous trading day's close of $46.61. Other companies within the Services sector that declined today were: American Learning ( ALRN), down 17.4%, J.C. Penney ( JCP), down 17%, FreeSeas ( FREE), down 13.6%, and Ambow Education ( AMBO), down 10%.
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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 $10.5 billion and is part of the retail industry. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are up 6.2% year to date as of the close of trading on Wednesday. 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 positive front, ChinaEdu Corporation ( CEDU), up 30.8%, China HGS Real Estate ( HGSH), up 25.4%, Air Transport Services Group ( ATSG), up 15.7%, and NTN Buzztime ( NTN), up 13.1%, were all gainers within the services sector with Limited Brands ( LTD) 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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