3 Stocks Dragging The Diversified Services Industry Downward
1. As of noon trading, Visa ( V) is down $1.80 (-1.0%) to $177.99 on average volume Thus far, 2.1 million shares of Visa exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $177.70-$179.50 after having opened the day at $179.46 as compared to the previous trading day's close of $179.79. Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $92.7 billion and is part of the financial sector. The company has a P/E ratio of 49.4, above the S&P 500 P/E ratio of 17.7. Shares are up 18.6% year to date as of the close of trading on Tuesday. TheStreet Ratings rates Visa as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Visa Ratings Report now. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE. If you are interested in one of these 4 stocks, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC). A reminder about TheStreet Ratings group: 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.
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