Chico's FAS Inc. (CHS): 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.

Chico's FAS ( CHS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.8%. By the end of trading, Chico's FAS fell $0.45 (-2.6%) to $16.63 on heavy volume. Throughout the day, 4,158,275 shares of Chico's FAS exchanged hands as compared to its average daily volume of 2,363,000 shares. The stock ranged in price between $16.63-$16.89 after having opened the day at $16.80 as compared to the previous trading day's close of $17.08. Other companies within the Services sector that declined today were: Learning Tree International ( LTRE), down 12.7%, Newlead Holdings ( NEWL), down 8.5%, J.C. Penney ( JCP), down 6.5% and China Jo-Jo Drugstores ( CJJD), down 6.5%.

Chico's FAS, Inc., together with its subsidiaries, operates as a specialty retailer of private branded, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing items in the United States. Chico's FAS has a market cap of $2.7 billion and is part of the retail industry. Shares are down 7.9% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate Chico's FAS a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Chico's FAS as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Liberty Media Corporation Class A ( LMCA), up 34.0%, LoJack Corporation ( LOJN), up 22.5%, Watsco ( WSO.B), up 22.4% and Armco Metals Holdings ( AMCO), up 19.0% , were all gainers within the services sector with Time Warner ( TWX) 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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