Best Buy Co Inc (BBY): 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.

Best Buy ( BBY) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.6%. By the end of trading, Best Buy rose 67 cents (3.3%) to $20.96 on average volume. Throughout the day, 11.5 million shares of Best Buy exchanged hands as compared to its average daily volume of 10.1 million shares. The stock ranged in a price between $20.30-$21.26 after having opened the day at $20.36 as compared to the previous trading day's close of $20.29. Other companies within the Services sector that increased today were: World Energy Solutions ( XWES), up 19.2%, Engility Holdings ( EGL), up 19.1%, Caesars Entertainment ( CZR), up 8.8%, and Zumiez ( ZUMZ), up 8.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Best Buy Co., Inc. operates as a retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Best Buy has a market cap of $6.79 billion and is part of the retail industry. The company has a P/E ratio of 7.7, below the S&P 500 P/E ratio of 17.7. Shares are up 71.2% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Best Buy a buy, two analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Best Buy as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

On the negative front, Box Ships ( TEU), down 10.3%, General Employment ( JOB), down 10%, China Auto Logistics ( CALI), down 9.3%, and Daegis ( DAEG), down 8.8%, were all laggards within the services sector with Grupo Televisa S.A ( TV) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

If you liked this article you might like

This Is How to Avoid Becoming Amazon Roadkill

Wall Street Overlooks Trump's North Korea Threats to Hit New Records

Best Buy Disappointment Sends Retailers Into a Spin