Tiffany & Co. (TIF): 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.

Tiffany ( TIF) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.6%. By the end of trading, Tiffany fell $1.14 (-1.6%) to $69.11 on average volume. Throughout the day, 1.9 million shares of Tiffany exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $68.97-$70.02 after having opened the day at $70.01 as compared to the previous trading day's close of $70.25. Other companies within the Services sector that declined today were: Innovaro ( INV), down 16.5%, Dick's Sporting Goods ( DKS), down 10.8%, Armco Metals Holdings ( CNAM), down 10.4%, and China Metro-Rural Holdings ( CNR), down 9.9%.
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Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. Tiffany has a market cap of $8.99 billion and is part of the specialty retail industry. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are up 22.5% year to date as of the close of trading on Friday. Currently there are six analysts that rate Tiffany a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Tiffany as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, China Auto Logistics ( CALI), up 88.8%, General Employment ( JOB), up 25%, Destination XL Group ( DXLG), up 21.1%, and Casual Male Retail Group ( CMRG), up 21.1%, were all gainers within the services sector with Walgreen Company ( WAG) 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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