AutoZone Inc (AZO): 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.

AutoZone ( AZO) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.5%. By the end of trading, AutoZone fell $8.42 (-1.8%) to $457.28 on average volume. Throughout the day, 365,299 shares of AutoZone exchanged hands as compared to its average daily volume of 253,600 shares. The stock ranged in price between $457.00-$463.36 after having opened the day at $461.28 as compared to the previous trading day's close of $465.70. Other companies within the Services sector that declined today were: InterCloud Systems ( ICLD), down 11.2%, Lionbridge Technologies ( LIOX), down 9.8%, Genetic Technologies ( GENE), down 8.8% and China Yida ( CNYD), down 7.8%.

AutoZone, Inc., together with its subsidiaries, is engaged in retailing and distributing automotive replacement parts and accessories. AutoZone has a market cap of $15.9 billion and is part of the retail industry. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are up 32.0% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate AutoZone a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates AutoZone as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, good cash flow from operations, increase in stock price during the past year and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Liberator Medical Holdings ( LBMH), up 12.3%, Magal Security Systems ( MAGS), up 12.2%, Jos A Bank Clothiers ( JOSB), up 11.2% and Seanergy Maritime Holdings ( SHIP), up 11.2% , were all gainers within the services sector with DISH Network ( DISH) 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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