L Brands Inc (LB): 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.

L Brands ( LB) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.4%. By the end of trading, L Brands fell $2.44 (-4.0%) to $57.75 on heavy volume. Throughout the day, 5,280,969 shares of L Brands exchanged hands as compared to its average daily volume of 1,564,500 shares. The stock ranged in price between $56.76-$58.50 after having opened the day at $58.00 as compared to the previous trading day's close of $60.19. Other companies within the Services sector that declined today were: VOXX International ( VOXX), down 17.6%, YRC Worldwide ( YRCW), down 16.0%, Qunar Cayman Islands ( QUNR), down 13.7% and FreeSeas ( FREE), down 12.5%.

L Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. L Brands has a market cap of $17.9 billion and is part of the retail industry. The company has a P/E ratio of 23.5, above the S&P 500 P/E ratio of 17.7. Shares are down 2.7% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate L Brands a buy, 3 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates L Brands as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

On the positive front, Armco Metals Holdings ( AMCO), up 15.6%, General Employment ( JOB), up 12.8%, Cache ( CACH), up 9.0% and Emmis Communications ( EMMS), up 8.6% , were all gainers within the services sector with Macy's ( M) 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).

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