Melco Crown Entertainment Ltd (MPEL): Today's Featured Services Loser

Melco Crown Entertainment ( MPEL) pushed the Services sector lower today making it today's featured Services loser. The sector as a whole closed the day up 1%. By the end of trading, Melco Crown Entertainment fell 50 cents (-4.3%) to $11.24 on average volume. Throughout the day, 8.5 million shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 7.2 million shares. The stock ranged in price between $11.20-$11.79 after having opened the day at $11.71 as compared to the previous trading day's close of $11.75. Other company's within the Services sector that declined today were: China Metro-Rural Holdings ( CNR), down 41.9%, Pointer Telocation ( PNTR), down 15.1%, ChinaEdu Corporation ( CEDU), down 13.8%, and China Auto Logistics ( CALI), down 13.1%.

Melco Crown Entertainment Limited, through its subsidiaries, engages in the development, ownership, and operation of casino gaming and entertainment resort facilities primarily in Macau. Melco Crown Entertainment has a market cap of $6.68 billion and is part of the leisure industry. The company has a P/E ratio of 22.1, above the average leisure industry P/E ratio of 16.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 18.1% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Melco Crown Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Sport Chalet ( SPCHA), up 15.2%, Genetic Technologies ( GENE), up 13%, DS Torm ( TRMD), up 11.6%, and SmartPros ( SPRO), up 10.9%, were all gainers within the services sector with Las Vegas Sands ( LVS) being today's featured services sector winner.

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).
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