Corrections Corporation Of America (CXW): Today's Featured Services Winner

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

Corrections Corporation of America ( CXW) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.4%. By the end of trading, Corrections Corporation of America rose $0.79 (2.4%) to $34.23 on average volume. Throughout the day, 2,418,026 shares of Corrections Corporation of America exchanged hands as compared to its average daily volume of 1,913,000 shares. The stock ranged in a price between $33.51-$34.46 after having opened the day at $33.62 as compared to the previous trading day's close of $33.44. Other companies within the Services sector that increased today were: Overstock.com ( OSTK), up 37.0%, Bluefly ( BFLY), up 22.0%, Inuvo ( INUV), up 11.6% and ITT Educational Services ( ESI), up 11.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities in the United States. Corrections Corporation of America has a market cap of $4.1 billion and is part of the diversified services industry. The company has a P/E ratio of 26.1, above the S&P 500 P/E ratio of 17.7. Shares are down 5.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Corrections Corporation of America as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Mecox Lane ( MCOX), down 19.9%, Seanergy Maritime Holdings ( SHIP), down 13.5%, UniTek Global Services ( UNTK), down 12.1% and QKL Stores ( QKLS), down 11.0% , were all laggards within the services sector with Time Warner ( TWX) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

null

More from Markets

Trade Tussle Sinks Stocks, Oil Slides, Micron, Daimler - 5 Things You Must Know

Trade Tussle Sinks Stocks, Oil Slides, Micron, Daimler - 5 Things You Must Know

Bank of England Holds Rates Steady, But Vote Shift Signals Hawkish Tone

Bank of England Holds Rates Steady, But Vote Shift Signals Hawkish Tone

Futures Fall on Further Trade Rhetoric from China and 4 Other Stories to Watch

Futures Fall on Further Trade Rhetoric from China and 4 Other Stories to Watch

5 Biggest U.S. Tech Stocks Test $4 Trillion Valuation Amid Bullish Nasdaq Run

5 Biggest U.S. Tech Stocks Test $4 Trillion Valuation Amid Bullish Nasdaq Run

Trade War Fear Creeps Back Into Markets on Thursday

Trade War Fear Creeps Back Into Markets on Thursday