Abercrombie & Fitch Company (ANF): 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

Abercrombie & Fitch Company ( ANF) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Abercrombie & Fitch Company fell $0.53 (-1.1%) to $48.97 on light volume. Throughout the day, 1,103,815 shares of Abercrombie & Fitch Company exchanged hands as compared to its average daily volume of 2,036,100 shares. The stock ranged in price between $48.32-$49.37 after having opened the day at $49.23 as compared to the previous trading day's close of $49.50. Other companies within the Services sector that declined today were: Bluefly ( BFLY), down 19.5%, China HGS Real Estate ( HGSH), down 12.9%, Orchard Supply Hardware ( OSH), down 10.7% and FreeSeas ( FREE), down 9.5%.
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Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. It operates through three segments: U.S. Stores, International Stores, and Direct-to-Consumer. Abercrombie & Fitch Company has a market cap of $3.8 billion and is part of the retail industry. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 3.2% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate Abercrombie & Fitch Company a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Abercrombie & Fitch Company as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, YRC Worldwide ( YRCW), down 41.0%, Arkansas Best Corporation ( ABFS), down 39.6%, CIBT Education Group ( MBA), down 24.9% and YY ( YY), down 20.1% , were all gainers within the services sector with Wyndham Worldwide Corporation ( WYN) 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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