Rite Aid Corporation (RAD): 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.

Rite Aid Corporation ( RAD) pushed the Services sector higher today making it today's featured services winner. The sector as a whole was unchanged today. By the end of trading, Rite Aid Corporation rose $0.34 (6.4%) to $5.65 on heavy volume. Throughout the day, 57,054,753 shares of Rite Aid Corporation exchanged hands as compared to its average daily volume of 25,762,300 shares. The stock ranged in a price between $5.45-$5.71 after having opened the day at $5.47 as compared to the previous trading day's close of $5.31. Other companies within the Services sector that increased today were: China Auto Logistics ( CALI), up 22.4%, Genetic Technologies ( GENE), up 15.7%, CEC Entertainment ( CEC), up 14.4% and Cambium Learning Group ( ABCD), up 14.4%.

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. Rite Aid Corporation has a market cap of $4.9 billion and is part of the retail industry. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. Shares are up 4.9% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Rite Aid Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Rite Aid Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

On the negative front, Container Store Group ( TCS), down 14.8%, J.C. Penney ( JCP), down 10.0%, Seanergy Maritime Holdings ( SHIP), down 7.3% and TAL International Group ( TAL), down 7.2% , 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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