Dunkin Brands Group Inc (DNKN): Services' Featured Stock 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.

Dunkin Brands Group ( DNKN) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.2%. By the end of trading, Dunkin Brands Group rose 95 cents (2.5%) to $38.81 on heavy volume. Throughout the day, two million shares of Dunkin Brands Group exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $37.18-$39.15 after having opened the day at $37.38 as compared to the previous trading day's close of $37.86. Other companies within the Services sector that increased today were: Destination XL Group ( DXLG), up 38.1%, Casual Male Retail Group ( CMRG), up 38.1%, TOP Ships ( TOPS), up 10.1%, and RadioShack ( RSH), up 7.7%.
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Dunkin' Brands Group, Inc., together with its subsidiaries, owns, operates, and franchises quick service restaurants under the Dunkin' Donuts and Baskin-Robbins brands worldwide. Dunkin Brands Group has a market cap of $3.94 billion and is part of the leisure industry. The company has a P/E ratio of 39.9, above the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Dunkin Brands Group a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Dunkin Brands Group as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and premium valuation.

On the negative front, PDI ( PDII), down 10.8%, CIBT Education Group ( MBA), down 10.6%, SED International Holdings ( SED), down 9.4%, and Birner Dental Management Services ( BDMS), down 9.2%, were all laggards within the services sector with Bed Bath & Beyond ( BBBY) 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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