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.
Tyco International (
TYC) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 1.3%. By the end of trading, Tyco International rose $1.38 (2.5%) to $56.05 on heavy volume. Throughout the day, 7.8 million shares of Tyco International exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in a price between $54.60-$56.20 after having opened the day at $54.82 as compared to the previous trading day's close of $54.67. Other companies within the Diversified Services industry that increased today were:
Innovaro (
INV), up 26.7%,
DLH Holdings (
DLHC), up 22.3%,
ENGlobal Corporation (
ENG), up 17.3%, and
Research Frontiers (
REFR), up 13.2%.
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Tyco International Ltd. provides security products and services, fire protection and detection products and services, valves and controls, and other industrial products worldwide. It operates through three segments: Tyco Security Solutions, Tyco Fire Protection, and Tyco Flow Control. Tyco International has a market cap of $25.21 billion and is part of the
services sector. The company has a P/E ratio of 19.6, below the average diversified services industry P/E ratio of 19.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 17.3% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Tyco International a buy, no analysts rate it a sell, and five rate it a hold.
TheStreet Ratings rates Tyco International as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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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