Costco Wholesale Corporation (COST): 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.

Costco Wholesale Corporation ( COST) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.9%. By the end of trading, Costco Wholesale Corporation rose $1.30 (1.1%) to $114.38 on average volume. Throughout the day, 2,330,185 shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of 2,026,800 shares. The stock ranged in a price between $113.44-$114.76 after having opened the day at $113.53 as compared to the previous trading day's close of $113.08. Other companies within the Services sector that increased today were: China Distance Education Holdings ( DL), up 18.0%, 500.com Ltd ADR ( WBAI), up 17.4%, Rocket Fuel ( FUEL), up 14.9% and TAL Education Group ( XRS), up 14.8%.

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Costco Wholesale Corporation has a market cap of $49.3 billion and is part of the retail industry. The company has a P/E ratio of 24.2, above the S&P 500 P/E ratio of 17.7. Shares are down 5.0% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Costco Wholesale Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Costco Wholesale Corporation 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, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Dolan ( DM), down 35.2%, Rent-A-Center ( RCII), down 22.2%, Chefs Warehouse Holdings ( CHEF), down 13.9% and Huttig Building Products ( HBP), down 9.1% , were all laggards within the services sector with GameStop ( GME) 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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