CVS Caremark Corp (CVS): Today's Highlighted Performer In Services

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.

CVS Caremark ( CVS) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.5%. By the end of trading, CVS Caremark rose $1.22 (2.3%) to $55.35 on average volume. Throughout the day, 5.8 million shares of CVS Caremark exchanged hands as compared to its average daily volume of six million shares. The stock ranged in a price between $54.30-$55.39 after having opened the day at $54.33 as compared to the previous trading day's close of $54.13. Other companies within the Services sector that increased today were: Mecox Lane ( MCOX), up 23.8%, Best Buy ( BBY), up 16.1%, Conn's ( CONN), up 13.1%, and Liquidity Service ( LQDT), up 11.6%.
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CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. CVS Caremark has a market cap of $68.59 billion and is part of the retail industry. The company has a P/E ratio of 18.2, above the S&P 500 P/E ratio of 17.7. Shares are up 12% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate CVS Caremark a buy, no analysts rate it a sell, and one rates it a hold.

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

On the negative front, Entravision Communications Corporation ( EVC), down 10.1%, Bluefly ( BFLY), down 9.6%, Paragon Shipping ( PRGN), down 8.6%, and Baltic Trading ( BALT), down 7.6%, were all laggards within the services sector with Wynn Resorts ( WYNN) 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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