Ctrip.com International Ltd. (CTRP): Today's Featured Services Laggard

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.

Ctrip.com International ( CTRP) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Ctrip.com International fell 44 cents (-2.7%) to $16.13 on average volume. Throughout the day, 3.1 million shares of Ctrip.com International exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $15.98-$16.95 after having opened the day at $16.91 as compared to the previous trading day's close of $16.57. Other companies within the Services sector that declined today were: Seven Arts Entertainment ( SAPX), down 15.1%, Gordman's Stores ( GMAN), down 14.9%, JTH Holding Inc Class A ( TAX), down 13.8%, and Mecox Lane ( MCOX), down 12%.

Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, airline tickets, and packaged tours in the People's Republic of China. Ctrip.com International has a market cap of $2.51 billion and is part of the leisure industry. The company has a P/E ratio of 15.6, below the average leisure industry P/E ratio of 16.7 and below the S&P 500 P/E ratio of 17.7. Shares are down 25.3% year to date as of the close of trading on Thursday. Currently there are two analysts that rate Ctrip.com International a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Ctrip.com International 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

On the positive front, Lentuo International ( LAS), up 29.6%, Emmis Communications ( EMMS), up 24.4%, Seanergy Maritime Holdings ( SHIP), up 14.3%, and SearchMedia Holdings ( IDI), up 12.9%, were all gainers within the services sector with Omnicom Group ( OMC) 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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