Global Payments Inc. (GPN): Today's Featured Diversified Services Winner

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.

Global Payments ( GPN) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 0.2%. By the end of trading, Global Payments rose 62 cents (1.5%) to $42.46 on average volume. Throughout the day, 880,985 shares of Global Payments exchanged hands as compared to its average daily volume of 922,500 shares. The stock ranged in a price between $41.77-$42.72 after having opened the day at $41.90 as compared to the previous trading day's close of $41.84. Other companies within the Diversified Services industry that increased today were: China HGS Real Estate ( HGSH), up 22.8%, Amrep Corporation ( AXR), up 11%, Innotrac Corporation ( INOC), up 10.7%, and Cambium Learning Group ( ABCD), up 6.9%.

Global Payments Inc. Global Payments has a market cap of $3.32 billion and is part of the services sector. The company has a P/E ratio of 17.8, equal to the average diversified services industry P/E ratio and equal to the S&P 500 P/E ratio of 17.7. Shares are down 11.2% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Global Payments a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Global Payments as a hold. 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 and reasonable valuation levels. 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 negative front, CIBT Education Group ( MBA), down 21.7%, American Learning ( ALRN), down 8%, Apollo Group ( APOL), down 7.5%, and Digital Generation ( DGIT), down 7.3%, were all laggards within the diversified services industry with Tyco International ( TYC) being today's diversified services industry laggard.

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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