L Brands Inc (LTD): Today's Featured Services Laggard

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

L Brands ( LTD) 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, L Brands fell $0.55 (-1.1%) to $49.94 on light volume. Throughout the day, 2,396,860 shares of L Brands exchanged hands as compared to its average daily volume of 3,208,400 shares. The stock ranged in price between $49.82-$50.63 after having opened the day at $50.52 as compared to the previous trading day's close of $50.49. Other companies within the Services sector that declined today were: Lentuo International ( LAS), down 31.7%, China HGS Real Estate ( HGSH), down 23.6%, Central European Media ( CETV), down 12.4% and Choice Hotels International ( CHH), down 10.6%.
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L Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. L Brands has a market cap of $14.5 billion and is part of the retail industry. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 7.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates L Brands as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the positive front, Orchard Supply Hardware ( OSH), down 23.5%, DLH Holdings ( DLHC), down 21.8%, CIBT Education Group ( MBA), down 13.9% and Monarch Casino & Resort ( MCRI), down 11.9% , were all gainers within the services sector with Best Buy ( BBY) 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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