TJX Companies (TJX): 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

TJX Companies ( TJX) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 1.1%. By the end of trading, TJX Companies rose $0.87 (1.8%) to $48.29 on light volume. Throughout the day, 2,912,796 shares of TJX Companies exchanged hands as compared to its average daily volume of 4,525,400 shares. The stock ranged in a price between $47.47-$48.53 after having opened the day at $47.57 as compared to the previous trading day's close of $47.42. Other companies within the Services sector that increased today were: ITT Educational Services ( ESI), up 30.5%, Destination XL Group ( DXLG), up 28.3%, Casual Male Retail Group ( CMRG), up 28.3% and Stamps.com ( STMP), up 27.1%.
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The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. The company operates in four segments: Marmaxx, HomeGoods, TJX Canada, and TJX Europe. TJX Companies has a market cap of $34.1 billion and is part of the retail industry. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates TJX Companies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, QKL Stores ( QKLS), down 23.7%, Point.360 ( PTSX), down 20.5%, CRA International ( CRAI), down 16.0% and Safeway ( SWY), down 13.9% , were all laggards within the services sector with AmerisourceBergen ( ABC) 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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