CVS Caremark Corp (CVS): 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

CVS Caremark ( CVS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 2.2%. By the end of trading, CVS Caremark fell $2.10 (-3.5%) to $56.99 on average volume. Throughout the day, 6,695,186 shares of CVS Caremark exchanged hands as compared to its average daily volume of 5,415,000 shares. The stock ranged in price between $56.82-$58.56 after having opened the day at $58.54 as compared to the previous trading day's close of $59.09. Other companies within the Services sector that declined today were: Orchard Supply Hardware Class A ( OSH), down 16.0%, Ku6 Media ( KUTV), down 13.8%, Gol Intelligent Airlines ( GOL), down 11.5% and E-Commerce China Dangdang ( DANG), down 10.0%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. CVS Caremark has a market cap of $73.4 billion and is part of the retail industry. The company has a P/E ratio of 18.7, above the S&P 500 P/E ratio of 17.7. Shares are up 22.2% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate CVS Caremark a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates CVS Caremark as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Empire Resorts ( NYNY), down 9.3%, GameStop ( GME), down 6.2%, Compx International ( CIX), down 6.1% and ChinaEdu Corporation ( CEDU), down 5.3%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

Automakers Slump as Trump Launches National Security Probe into US Car Imports

Automakers Slump as Trump Launches National Security Probe into US Car Imports

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know

Deutsche Bank Confirms Massive Job Cuts as New CEO Christian Sewing Plants Flag

Deutsche Bank Confirms Massive Job Cuts as New CEO Christian Sewing Plants Flag

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern