Abercrombie & Fitch Company (ANF): 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.

Abercrombie & Fitch Company ( ANF) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.5%. By the end of trading, Abercrombie & Fitch Company rose $1.97 (5.8%) to $35.99 on heavy volume. Throughout the day, 6,909,762 shares of Abercrombie & Fitch Company exchanged hands as compared to its average daily volume of 3,209,100 shares. The stock ranged in a price between $34.79-$36.50 after having opened the day at $34.84 as compared to the previous trading day's close of $34.02. Other companies within the Services sector that increased today were: Luna Innovations ( LUNA), up 15.4%, Industrial Services of America ( IDSA), up 14.3%, SFX Entertainment ( SFXE), up 8.6% and PC Connection ( PCCC), up 8.0%.

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. It operates through three segments: U.S. Stores, International Stores, and Direct-to-Consumer. Abercrombie & Fitch Company has a market cap of $2.6 billion and is part of the retail industry. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are down 28.5% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Abercrombie & Fitch Company a buy, 2 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Abercrombie & Fitch Company as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and feeble growth in the company's earnings per share.

On the negative front, Krispy Kreme Doughnuts ( KKD), down 20.2%, Point.360 ( PTSX), down 11.1%, PowerSecure International ( POWR), down 10.7% and YRC Worldwide ( YRCW), down 9.5% , were all laggards within the services sector with Time Warner Cable ( TWC) 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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