Limited Brands Inc. (LTD): Services' Featured Underperformer Of The Day

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.

Limited Brands ( LTD) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Limited Brands fell 59 cents (-1.3%) to $44.15 on light volume. Throughout the day, two million shares of Limited Brands exchanged hands as compared to its average daily volume of 3.6 million shares. The stock ranged in price between $43.85-$44.90 after having opened the day at $44.89 as compared to the previous trading day's close of $44.74. Other companies within the Services sector that declined today were: Rainmaker Systems ( RMKR), down 19.2%, Gordman's Stores ( GMAN), down 15.3%, U.S. Auto Parts Network ( PRTS), down 12.8%, and Excel Maritime Carriers ( EXM), down 9.3%.
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Limited Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty, and personal care products and accessories primarily in the United States and Canada. Limited Brands has a market cap of $12.71 billion and is part of the retail industry. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are down 4.9% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Limited Brands a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Limited Brands as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the positive front, Destination XL Group ( DXLG), up 34.1%, Casual Male Retail Group ( CMRG), up 34.1%, PokerTek ( PTEK), up 24.6%, and Tiger Media ( IDI), up 11.2%, 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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