Sothebys (BID): 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

Sothebys ( BID) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 1.0%. By the end of trading, Sothebys rose $0.44 (1.1%) to $38.80 on heavy volume. Throughout the day, 2,348,367 shares of Sothebys exchanged hands as compared to its average daily volume of 1,096,800 shares. The stock ranged in a price between $38.74-$39.60 after having opened the day at $38.98 as compared to the previous trading day's close of $38.36. Other companies within the Services sector that increased today were: Lee ( LEE), up 20.7%, InfoSonics Corporation ( IFON), up 11.7%, Radio One ( ROIA), up 7.6% and Ultrapetrol Bahamas ( ULTR), up 7.4%.
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Sotheby's operates as an auctioneer of authenticated fine art, decorative art, and jewelry. The company operates in three segments: Auction, Finance, and Dealer. Sothebys has a market cap of $2.6 billion and is part of the specialty retail industry. The company has a P/E ratio of 27.6, above the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Sothebys a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Sothebys as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Orchard Supply Hardware Class A ( OSH), down 58.7%, Digital Domain Media Group ( DDMGQ), down 20.4%, Digital Domain Media Group ( DDMG), down 20.4% and Fortune Industries ( FFI), down 15.8% , were all laggards within the services sector with Target ( TGT) 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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