SAIC Inc. (SAI): Today's Featured Diversified 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.

SAIC ( SAI) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 0.2%. By the end of trading, SAIC fell 16 cents (-1.3%) to $11.81 on light volume. Throughout the day, 2.6 million shares of SAIC exchanged hands as compared to its average daily volume of 3.6 million shares. The stock ranged in price between $11.74-$12 after having opened the day at $11.97 as compared to the previous trading day's close of $11.97. Other companies within the Diversified Services industry that declined today were: China HGS Real Estate ( HGSH), down 10.9%, School Specialty ( SCHS), down 9.5%, Scientific Learning Corporation ( SCIL), down 6.8%, and Food Technology Service ( VIFL), down 5.5%.
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SAIC, Inc. provides scientific, engineering, systems integration, and technical services and solutions to agencies of the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. SAIC has a market cap of $4.12 billion and is part of the services sector. Shares are down 2% year to date as of the close of trading on Monday. Currently there are four analysts that rate SAIC a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates SAIC 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

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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