US Airways Group Inc (LCC): 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

US Airways Group ( LCC) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.9%. By the end of trading, US Airways Group fell $0.31 (-1.8%) to $16.64 on heavy volume. Throughout the day, 12,695,302 shares of US Airways Group exchanged hands as compared to its average daily volume of 7,015,800 shares. The stock ranged in price between $15.93-$17.08 after having opened the day at $16.92 as compared to the previous trading day's close of $16.95. Other companies within the Services sector that declined today were: EnviroStar ( EVI), down 10.7%, Genetic Technologies ( GENE), down 9.2%, UniTek Global Services ( UNTK), down 9.0% and Francescas Holdings ( FRAN), down 9.0%.
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US Airways Group, Inc., through its subsidiaries, provides air transportation for passengers and cargo. US Airways Group has a market cap of $2.9 billion and is part of the transportation industry. The company has a P/E ratio of 5.4, below the S&P 500 P/E ratio of 17.7. Shares are up 25.6% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate US Airways Group a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates US Airways Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Media General ( MEG), down 33.7%, ENGlobal Corporation ( ENG), down 29.6%, Orchard Supply Hardware ( OSH), down 24.5% and Torm A/S ( TRMD), down 14.2% , were all gainers within the services sector with Lowe's Companies ( LOW) 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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