New Oriental Education & Technology Group I (EDU): Today's Featured Services Laggard

New Oriental Education & Technology Group I ( EDU) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 2%. By the end of trading, New Oriental Education & Technology Group I fell 39 cents (-3.3%) to $11.33 on light volume. Throughout the day, 2.1 million shares of New Oriental Education & Technology Group I exchanged hands as compared to its average daily volume of 4.4 million shares. The stock ranged in price between $11.28-$11.95 after having opened the day at $11.79 as compared to the previous trading day's close of $11.72. Other company's within the Services sector that declined today were: Zipcar ( ZIP), down 36.5%, Zagg ( ZAGG), down 22.3%, comScore ( SCOR), down 21%, and Air Transport Services Group ( ATSG), down 18.9%.

New Oriental Education & Technology Group Inc. provides private educational services primarily in China. New Oriental Education & Technology Group I has a market cap of $1.78 billion and is part of the diversified services industry. The company has a P/E ratio of 11.2, below the average diversified services industry P/E ratio of 13.2 and below the S&P 500 P/E ratio of 17.7. Shares are down 53.3% year to date as of the close of trading on Thursday. Currently there are five analysts that rate New Oriental Education & Technology Group I a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates New Oriental Education & Technology Group I as a hold. 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 and growth in earnings per share. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the positive front, Blue Nile ( NILE), up 34.7%, China HGS Real Estate ( HGSH), up 30.8%, Genco Shipping & Trading ( GNK), up 24.3%, and Mercadolibre ( MELI), up 24.3%, were all gainers within the services sector with News ( NWSA) 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).
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