Bed Bath & Beyond Inc. (BBBY): 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

Bed Bath & Beyond ( BBBY) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Bed Bath & Beyond fell $0.79 (-1.1%) to $69.04 on average volume. Throughout the day, 2,062,912 shares of Bed Bath & Beyond exchanged hands as compared to its average daily volume of 2,547,900 shares. The stock ranged in price between $68.84-$69.83 after having opened the day at $69.53 as compared to the previous trading day's close of $69.83. Other companies within the Services sector that declined today were: Star Bulk Carriers ( SBLK), down 17.2%, Envoy Capital Group ( ECGI), down 16.7%, Barnes & Noble ( BKS), down 9.5% and Sport Chalet ( SPCHA), down 8.6%.
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Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. Bed Bath & Beyond has a market cap of $15.3 billion and is part of the retail industry. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are up 24.2% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Bed Bath & Beyond a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Bed Bath & Beyond as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Pointer Telocation ( PNTR), down 46.9%, YOU On Demand Holdings ( YOD), down 20.9%, ALCO Stores ( ALCS), down 13.5% and ENGlobal Corporation ( ENG), down 11.8% , were all gainers within the services sector with J.C. Penney ( JCP) 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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