Williams-Sonoma Inc. (WSM): 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.

Williams-Sonoma ( WSM) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Williams-Sonoma fell 62 cents (-1.2%) to $51.48 on average volume. Throughout the day, 1.2 million shares of Williams-Sonoma exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $51.38-$52.74 after having opened the day at $52.11 as compared to the previous trading day's close of $52.10. Other companies within the Services sector that declined today were: 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%.
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Williams-Sonoma, Inc. operates as a specialty retailer of home products. Williams-Sonoma has a market cap of $5.05 billion and is part of the retail industry. The company has a P/E ratio of 20.3, above the S&P 500 P/E ratio of 17.7. Shares are up 19% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Williams-Sonoma a buy, no analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Williams-Sonoma 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, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Era Group ( ERA), up 23.1%, Rite Aid Corporation ( RAD), up 18.4%, Innotrac Corporation ( INOC), up 16%, and Zumiez ( ZUMZ), up 13.4%, were all gainers within the services sector with Michael Kors Holdings ( KORS) 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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