Michael Kors Holdings Ltd (KORS): 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.

Michael Kors Holdings ( KORS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Michael Kors Holdings fell $1.95 (-3.4%) to $56.15 on average volume. Throughout the day, 5.7 million shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 5.6 million shares. The stock ranged in price between $55.26-$58.54 after having opened the day at $58.24 as compared to the previous trading day's close of $58.10. Other companies within the Services sector that declined today were: Fortune Industries ( FFI), down 24.5%, Intersections ( INTX), down 16.9%, Point.360 ( PTSX), down 11.6%, and Sport Chalet ( SPCHB), down 11.6%.
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Michael Kors Holdings Limited engages in the design, marketing, distribution, and retail of branded women's apparel and accessories, and men's apparel. The company sells its products primarily under the names of Michael Kors, MICHAEL KORS, MICHAEL MICHAEL KORS, and KORS MICHAEL KORS. Michael Kors Holdings has a market cap of $11.49 billion and is part of the retail industry. The company has a P/E ratio of 35.6, above the S&P 500 P/E ratio of 17.7. Shares are up 13.9% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Michael Kors Holdings a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Michael Kors Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and robust revenue growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front, DLH Holdings ( DLHC), up 15.8%, Gaiam Inc. Class A ( GAIA), up 13.2%, Seanergy Maritime Holdings ( SHIP), up 7.7%, and Premier Exhibitions ( PRXI), up 7.3%, were all gainers within the services sector with Magna International ( MGA) 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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