Family Dollar Stores Inc. (FDO): 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.

Family Dollar Stores ( FDO) 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, Family Dollar Stores fell $1.62 (-2.4%) to $65.98 on heavy volume. Throughout the day, 1,952,247 shares of Family Dollar Stores exchanged hands as compared to its average daily volume of 1,119,700 shares. The stock ranged in price between $65.20-$66.99 after having opened the day at $66.92 as compared to the previous trading day's close of $67.60. Other companies within the Services sector that declined today were: Ulta Salon Cosmetics & Fragrances ( ULTA), down 20.5%, Newlead Holdings ( NEWL), down 13.4%, China Auto Logistics ( CALI), down 12.6% and Big Lots ( BIG), down 12.6%.

Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low- and middle-income consumers in the United States. Family Dollar Stores has a market cap of $8.0 billion and is part of the retail industry. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are up 6.6% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Family Dollar Stores a buy, 2 analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Family Dollar Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, EnviroStar ( EVI), up 21.8%, 500.com Ltd ADR ( WBAI), up 19.5%, Pacific Sunwear ( PSUN), up 18.8% and WidePoint Corporation ( WYY), up 18.1% , were all gainers within the services sector with Lowe's Companies ( LOW) 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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