Lowe's Companies Inc. (LOW): Services' Highlighted Dud 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.

Lowe's Companies ( LOW) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 3%. By the end of trading, Lowe's Companies fell $1.01 (-2.6%) to $37.91 on average volume. Throughout the day, 10 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 9.1 million shares. The stock ranged in price between $37.90-$39.18 after having opened the day at $38.60 as compared to the previous trading day's close of $38.92. Other companies within the Services sector that declined today were: UniTek Global Services ( UNTK), down 49.5%, CIBT Education Group ( MBA), down 18.7%, Carriage Services ( CSV), down 14.2%, and China Jo-Jo Drugstores ( CJJD), down 13.7%.
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Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer. It offers a range of products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $42.28 billion and is part of the retail industry. The company has a P/E ratio of 23, above the S&P 500 P/E ratio of 17.7. Shares are up 9.6% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Lowe's Companies a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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