Chico's FAS Inc. (CHS) Gains Contribute To Strong Performance

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.

Chico's FAS ( CHS) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 1.4%. By the end of trading, Chico's FAS rose 27 cents (1.6%) to $17.14 on average volume. Throughout the day, 3.4 million shares of Chico's FAS exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in a price between $16.87-$17.17 after having opened the day at $16.92 as compared to the previous trading day's close of $16.87. Other companies within the Services sector that increased today were: Good Times Restaurants ( GTIM), up 10%, Conn's ( CONN), up 8.1%, Acorn International ( ATV), up 7%, and General Employment ( JOB), up 6.5%.
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Chico's FAS, Inc., together with its subsidiaries, operates as a specialty retailer of private branded, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing items in the United States. Chico's FAS has a market cap of $2.71 billion and is part of the retail industry. The company has a P/E ratio of 15.4, below the S&P 500 P/E ratio of 17.7. Shares are down 8.6% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Chico's FAS a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Chico's FAS as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Newlead Holdings ( NEWL), down 10.8%, China Auto Logistics ( CALI), down 10.5%, Paragon Shipping ( PRGN), down 9.8%, and Global Payments ( GPN), down 9.2%, were all laggards within the services sector with eBay ( EBAY) 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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