L Brands Inc (LTD): 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

L Brands ( LTD) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.6%. By the end of trading, L Brands rose $1.52 (3.0%) to $51.81 on heavy volume. Throughout the day, 4,609,520 shares of L Brands exchanged hands as compared to its average daily volume of 2,798,200 shares. The stock ranged in a price between $50.11-$51.86 after having opened the day at $50.30 as compared to the previous trading day's close of $50.29. Other companies within the Services sector that increased today were: Acquity Group Ltd ADR ( AQ), up 113.6%, Websense ( WBSN), up 28.8%, E-Commerce China Dangdang ( DANG), up 15.9% and YRC Worldwide ( YRCW), up 15.0%.
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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 $14.6 billion and is part of the retail industry. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 6.9% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate L Brands a buy, 1 analyst rates it a sell, and 10 rate it a hold.

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 negative front, Team ( TISI), down 16.8%, FreeSeas ( FREE), down 13.8%, Bluefly ( BFLY), down 10.1% and Spanish Broadcasting System ( SBSA), down 8.9% , were all laggards within the services sector with Time Warner Cable ( TWC) 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).

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