Starwood Hotels & Resorts Worldwide Inc (HOT): 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

Starwood Hotels & Resorts Worldwide ( HOT) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Starwood Hotels & Resorts Worldwide fell $1.00 (-1.5%) to $66.93 on average volume. Throughout the day, 1,486,491 shares of Starwood Hotels & Resorts Worldwide exchanged hands as compared to its average daily volume of 1,873,700 shares. The stock ranged in price between $66.80-$67.91 after having opened the day at $67.80 as compared to the previous trading day's close of $67.93. Other companies within the Services sector that declined today were: China Auto Logistics ( CALI), down 13.1%, DGSE Companies ( DGSE), down 12.6%, Computer Sciences Corporation ( CSC), down 9.7% and Willdan Group ( WLDN), down 9.4%.
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Starwood Hotels & Resorts Worldwide, Inc. operates as a hotel and leisure company worldwide. The company operates luxury and upscale full-service hotels, resorts, residences, retreats, select-service hotels, and extended stay hotels under the St. Starwood Hotels & Resorts Worldwide has a market cap of $13.1 billion and is part of the leisure industry. The company has a P/E ratio of 27.2, above the S&P 500 P/E ratio of 17.7. Shares are up 18.4% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Starwood Hotels & Resorts Worldwide a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Starwood Hotels & Resorts Worldwide as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Genetic Technologies ( GENE), down 21.9%, YRC Worldwide ( YRCW), down 21.5%, Liberty Media Corporation ( LMCAD), down 15.6% and Liberty Media Corporation ( LMCA), down 15.6% , were all gainers within the services sector with Target ( TGT) 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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