Costco Wholesale Corporation (COST): 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.

Costco Wholesale Corporation ( COST) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.4%. By the end of trading, Costco Wholesale Corporation rose $1.31 (1.3%) to $103.75 on heavy volume. Throughout the day, 3.8 million shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $103.26-$105.52 after having opened the day at $103.61 as compared to the previous trading day's close of $102.44. Other companies within the Services sector that increased today were: NTN Buzztime ( NTN), up 14.4%, BioScrip ( BIOS), up 12.6%, Cabela's ( CAB), up 12.5%, and Innotrac Corporation ( INOC), up 10.1%.
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Costco Wholesale Corporation engages in the operation of membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Costco Wholesale Corporation has a market cap of $44.89 billion and is part of the retail industry. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are up 4.4% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Costco Wholesale Corporation a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Costco Wholesale Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, China Auto Logistics ( CALI), down 15.2%, Sears Hometown & Outlet Stores ( SHOS), down 12.8%, FreeSeas ( FREE), down 12.7%, and Excel Maritime Carriers ( EXM), down 11.8%, were all laggards within the services sector with Ulta Salon Cosmetics & Fragrances ( ULTA) 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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