DeVry Inc. (DV): 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.

DeVry ( DV) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.5%. By the end of trading, DeVry fell 30 cents (-1.3%) to $23.42 on light volume. Throughout the day, 1.3 million shares of DeVry exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $23.31-$24.23 after having opened the day at $23.92 as compared to the previous trading day's close of $23.72. Other companies within the Services sector that declined today were: DS Torm ( TRMD), down 20.6%, Mecox Lane ( MCOX), down 13.3%, Coast Distribution System ( CRV), down 11.3%, and Scientific Learning Corporation ( SCIL), down 9.7%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

DeVry Inc., together with its subsidiaries, provides educational services worldwide. DeVry has a market cap of $1.55 billion and is part of the diversified services industry. The company has a P/E ratio of 11.6, equal to the average diversified services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 38.3% year to date as of the close of trading on Friday. Currently there are five analysts that rate DeVry a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates DeVry as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

On the positive front, National American University Holdings ( NAUH), up 11.5%, Longwei Petroleum Investment Holding Limite ( LPH), up 11.4%, Swisher Hygiene ( SWSH), up 10.2%, and Alon Holdings Blue Square - Israel ( BSI), up 9.4%, were all gainers within the services sector with Starbucks Corporation ( SBUX) 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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.

If you liked this article you might like

Laureate Education's (LAUR) Underwhelming IPO Hasn't Scared Away Wall Street

It's Going to Take More Than Lax Regulation to Turn Around For-Profit Education Sector

Bank Fees, Payday Loans to Get Less Scrutiny From Trump's Consumer Watchdog

The Small Caps With Cash Portfolio Powers Ahead

The Small Caps With Cash Portfolio Powers Ahead

DeVry's Specialty Schools Shine as Regulatory Risk Hovers Over For-Profit Education