Corrections Corporation Of America (CXW): Today's Featured Diversified Services Winner

Corrections Corporation of America ( CXW) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 1.2%. By the end of trading, Corrections Corporation of America rose 17 cents (0.7%) to $26.01 on light volume. Throughout the day, 1.1 million shares of Corrections Corporation of America exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $25.84-$26.40 after having opened the day at $25.93 as compared to the previous trading day's close of $25.84. Other companies within the Diversified Services industry that increased today were: Furiex Pharmaceuticals ( FURX), up 6.8%, Collectors Universe ( CLCT), up 6.1%, Cadiz ( CDZI), up 5.3%, and PRGX Global ( PRGX), up 4.4%.

Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities in the United States. Corrections Corporation of America has a market cap of $2.64 billion and is part of the services sector. The company has a P/E ratio of 17.6, below the average diversified services industry P/E ratio of 17.8 and equal to the S&P 500 P/E ratio of 17.7. Shares are up 29.6% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Corrections Corporation of America a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Corrections Corporation of America 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, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, CD International ( CDII), down 10.3%, Intersections ( INTX), down 9.6%, Genetic Technologies ( GENE), down 9.3%, and Carbonite ( CARB), down 8.3%, were all losers within the diversified services industry with Western Union Company ( WU) being today's diversified services industry loser.

For investors not wanting singular stock exposure, 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).
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