CVS Caremark Corp (CVS): Today's Featured Services Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

CVS Caremark ( CVS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.1%. By the end of trading, CVS Caremark fell $0.66 (-1.1%) to $60.96 on light volume. Throughout the day, 3,483,226 shares of CVS Caremark exchanged hands as compared to its average daily volume of 4,681,500 shares. The stock ranged in price between $60.86-$62.08 after having opened the day at $61.84 as compared to the previous trading day's close of $61.62. Other companies within the Services sector that declined today were: General Employment ( JOB), down 23.7%, TOP Ships ( TOPS), down 15.8%, Spirit Airlines ( SAVE), down 8.3% and RLJ Entertainment ( RLJE), down 8.2%.

CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. CVS Caremark has a market cap of $75.9 billion and is part of the retail industry. Shares are up 27.4% year to date as of the close of trading on Monday. Currently there are 14 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, U.S. Auto Parts Network ( PRTS), up 19.2%, Boyd Gaming Corporation ( BYD), up 18.3%, R.R. Donnelley & Sons Company ( RRD), up 16.5% and Multimedia Games ( MGAM), up 11.0% , were all gainers within the services sector with MGM Resorts International ( MGM) 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).

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