Costco Wholesale Corporation (COST): 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.

Costco Wholesale Corporation ( COST) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Costco Wholesale Corporation fell $3.21 (-2.8%) to $113.26 on heavy volume. Throughout the day, 8,880,271 shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of 2,296,000 shares. The stock ranged in price between $112.27-$114.64 after having opened the day at $113.15 as compared to the previous trading day's close of $116.47. Other companies within the Services sector that declined today were: Newlead Holdings ( NEWL), down 30.3%, Cross Country Healthcare ( CCRN), down 22.0%, Spark Networks ( LOV), down 19.0% and Staples ( SPLS), down 15.3%.

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 $51.3 billion and is part of the retail industry. Shares are down 2.0% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Costco Wholesale Corporation a buy, no analysts rate it a sell, and 9 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, increase in net income, notable return on equity, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, BJ's Restaurants ( BJRI), up 21.6%, InfoSonics Corporation ( IFON), up 14.8%, China Metro-Rural Holdings ( CNR), up 14.7% and NTN Buzztime ( NTN), up 13.8% , were all gainers within the services sector with Directv ( DTV) 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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