Target Corp (TGT): 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

Target ( TGT) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 1.0%. By the end of trading, Target fell $1.28 (-1.8%) to $68.88 on average volume. Throughout the day, 4,923,607 shares of Target exchanged hands as compared to its average daily volume of 4,406,900 shares. The stock ranged in price between $68.75-$70.33 after having opened the day at $70.15 as compared to the previous trading day's close of $70.16. Other companies within the Services sector that declined today were: 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%.
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Target Corporation operates general merchandise stores in the United States. Target has a market cap of $44.8 billion and is part of the retail industry. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are up 18.6% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Target a buy, no analysts rate it a sell, and 8 rate it a hold.

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

On the positive front, Lee ( LEE), down 20.7%, InfoSonics Corporation ( IFON), down 11.7%, Radio One ( ROIA), down 7.6% and Ultrapetrol Bahamas ( ULTR), down 7.4% , were all gainers within the services sector with Sothebys ( BID) 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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