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 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, Michael Kors Holdings rose $2.21 (4%) to $57.31 on average volume. Throughout the day, 5.1 million shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in a price between $54.75-$57.72 after having opened the day at $55.14 as compared to the previous trading day's close of $55.10. Other companies within the Services sector that increased today were:
Era Group (
ERA), up 23.1%,
Rite Aid Corporation (
RAD), up 18.4%,
Innotrac Corporation (
INOC), up 16%, and
Zumiez (
ZUMZ), up 13.4%.
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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 $11.15 billion and is part of the retail industry. The company has a P/E ratio of 34.6, above the S&P 500 P/E ratio of 17.7. Shares are up 8% year to date as of the close of trading on Wednesday. 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 negative front,
VisionChina Media (
VISN), down 12.1%,
Inuvo (
INUV), down 8.1%,
Arkansas Best Corporation (
ABFS), down 7.9%, and
Natural Grocers by Vitamin Cottage (
NGVC), down 6.6%, were all laggards within the services sector with
Williams-Sonoma (
WSM) 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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