Time Warner Cable Inc (TWC): 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.

Time Warner Cable ( TWC) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.5%. By the end of trading, Time Warner Cable fell $2.67 (-1.9%) to $134.14 on heavy volume. Throughout the day, 3,917,130 shares of Time Warner Cable exchanged hands as compared to its average daily volume of 2,185,800 shares. The stock ranged in price between $133.54-$136.53 after having opened the day at $136.52 as compared to the previous trading day's close of $136.81. Other companies within the Services sector that declined today were: 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%.

Time Warner Cable Inc., together with its subsidiaries, offers video, high-speed data, and voice services to residential and business service customers over its broadband cable systems in the United States. Time Warner Cable has a market cap of $39.0 billion and is part of the media industry. The company has a P/E ratio of 21.3, above the S&P 500 P/E ratio of 17.7. Shares are up 40.8% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Time Warner Cable a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Time Warner Cable as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, 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% , were all gainers within the services sector with Abercrombie & Fitch Company ( ANF) 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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