Advance Auto Parts Inc (AAP): Today's Featured Services Winner

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.

Advance Auto Parts ( AAP) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 1.0%. By the end of trading, Advance Auto Parts rose $2.04 (2.0%) to $103.05 on light volume. Throughout the day, 546,484 shares of Advance Auto Parts exchanged hands as compared to its average daily volume of 792,400 shares. The stock ranged in a price between $100.94-$103.40 after having opened the day at $101.35 as compared to the previous trading day's close of $101.01. Other companies within the Services sector that increased today were: Mastech Holdings ( MHH), up 17.2%, Clear Channel Outdoor Holdings ( CCO), up 15.2%, Frontline ( FRO), up 10.7% and Dolan ( DM), up 8.6%.

Advance Auto Parts, Inc., through its subsidiaries, operates as a specialty retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP), and Autopart International (AI). Advance Auto Parts has a market cap of $7.4 billion and is part of the retail industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 41.0% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Advance Auto Parts a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Advance Auto Parts as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, FreeSeas ( FREE), down 20.6%, YuMe ( YUME), down 11.1%, Newlead Holdings ( NEWL), down 9.9% and Myriad Genetics ( MYGN), down 9.3% , were all laggards within the services sector with Target ( TGT) being today's services sector laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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