Gap Inc. (GPS): 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.

Gap ( GPS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Gap fell $0.41 (-1.0%) to $40.77 on average volume. Throughout the day, 4,058,687 shares of Gap exchanged hands as compared to its average daily volume of 4,645,500 shares. The stock ranged in price between $40.31-$41.14 after having opened the day at $40.76 as compared to the previous trading day's close of $41.18. Other companies within the Services sector that declined today were: Infoblox ( BLOX), down 28.6%, Tilly's ( TLYS), down 24.4%, InterCloud Systems ( ICLD), down 12.3% and Lentuo International ( LAS), down 7.3%.

The Gap, Inc. operates as an apparel retail company. It offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands. Gap has a market cap of $19.2 billion and is part of the retail industry. The company has a P/E ratio of 14.7, below the S&P 500 P/E ratio of 17.7. Shares are up 32.2% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Gap a buy, 1 analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates Gap 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, notable return on equity, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Seanergy Maritime Holdings ( SHIP), up 31.4%, Document Security Systems ( DSS), up 30.6%, BioScrip ( BIOS), up 17.3% and Newlead Holdings ( NEWL), up 17.0% , were all gainers within the services sector with Macy's ( M) 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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