Visa Inc. (V): 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.

Visa ( V) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Visa fell $1.55 (-1.1%) to $138.71 on light volume. Throughout the day, 1.7 million shares of Visa exchanged hands as compared to its average daily volume of three million shares. The stock ranged in price between $138.56-$139.50 after having opened the day at $139 as compared to the previous trading day's close of $140.26. Other companies within the Diversified Services industry that declined today were: Green Dot ( GDOT), down 20.2%, Oxygen Biotherapeutics ( OXBT), down 8.7%, Acacia Research Coroporation ( ACTG), down 7.9%, and NetSpend Holdings ( NTSP), down 7.3%.
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Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $73.67 billion and is part of the services sector. The company has a P/E ratio of 70.5, below the average diversified services industry P/E ratio of 102.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 38.1% year to date as of the close of trading on Friday. Currently there are 24 analysts that rate Visa a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates Visa as a buy. 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, expanding profit margins 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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