Michael Kors Holdings Ltd (KORS): 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

Michael Kors Holdings ( KORS) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.5%. By the end of trading, Michael Kors Holdings rose $0.89 (1.6%) to $56.94 on light volume. Throughout the day, 2,176,491 shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 5,661,500 shares. The stock ranged in a price between $55.55-$57.00 after having opened the day at $56.09 as compared to the previous trading day's close of $56.05. Other companies within the Services sector that increased today were: Multimedia Games ( MGAM), up 22.2%, China HGS Real Estate ( HGSH), up 16.6%, Wesco Aircraft Holdings ( WAIR), up 11.8% and Document Security Systems ( DSS), up 10.9%.
  • 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.

Michael Kors Holdings Limited engages in the design, marketing, distribution, and retail of branded women's apparel and accessories, and men's apparel. The company sells its products primarily under the names of Michael Kors, MICHAEL KORS, MICHAEL MICHAEL KORS, and KORS MICHAEL KORS. Michael Kors Holdings has a market cap of $11.3 billion and is part of the retail industry. The company has a P/E ratio of 35.2, above the S&P 500 P/E ratio of 17.7. Shares are up 10.0% year to date as of the close of trading on Monday.

TheStreet Ratings rates Michael Kors Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and robust revenue growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the negative front, Mecox Lane ( MCOX), down 15.1%, DLH Holdings ( DLHC), down 14.7%, NTN Buzztime ( NTN), down 9.9% and Arkansas Best Corporation ( ABFS), down 9.0% , were all laggards within the services sector with Family Dollar Stores ( FDO) 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

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Video: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Stocks Trade Mixed, Energy Shares Fall on Drop in Oil Prices

Stocks Trade Mixed, Energy Shares Fall on Drop in Oil Prices

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister