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Michael Kors Holdings Ltd (KORS): Today's Featured Services Laggard

Tickers in this article: KORS

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Michael Kors Holdings ( KORS) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Michael Kors Holdings fell $0.72 (-1.4%) to $52.36 on light volume. Throughout the day, 3,555,679 shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 5,758,200 shares. The stock ranged in price between $51.63-$53.12 after having opened the day at $53.05 as compared to the previous trading day's close of $53.08. Other companies within the Services sector that declined today were: CIBT Education Group ( MBA), down 18.2%, Excel Maritime Carriers ( EXM), down 11.5%, dELiA*s ( DLIA), down 10.1% and DLH Holdings ( DLHC), down 8.5%.

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Michael Kors Holdings Limited engages in the design, marketing, distribution, and retail of branded women's apparel and accessories, and men's apparel. The company sells its products primarily under the names of Michael Kors, MICHAEL KORS, MICHAEL MICHAEL KORS, and KORS MICHAEL KORS. Michael Kors Holdings has a market cap of $10.7 billion and is part of the retail industry. The company has a P/E ratio of 33.3, above the S&P 500 P/E ratio of 17.7. Shares are up 4.0% year to date as of the close of trading on Friday.

TheStreet Ratings rates Michael Kors Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and robust revenue growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front, Destination XL Group ( DXLG), down 23.7%, Casual Male Retail Group ( CMRG), down 23.7%, Delhaize Group ( DEG), down 11.1% and Radio One ( ROIAK), down 9.6% , were all gainers within the services sector with Best Buy ( BBY) 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).