Moody's Corporation (MCO): 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.

Moody's Corporation ( MCO) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 0.1%. By the end of trading, Moody's Corporation rose 53 cents (1.2%) to $45.72 on average volume. Throughout the day, two million shares of Moody's Corporation exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $45.24-$46 after having opened the day at $45.59 as compared to the previous trading day's close of $45.19. Other companies within the Diversified Services industry that increased today were: Carbonite ( CARB), up 11.1%, WidePoint Corporation ( WYY), up 9.3%, Franklin Covey Company ( FC), up 8.8%, and ADT Corporation ( ADT), up 7.4%.
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Moody's Corporation, through its subsidiaries, provides credit ratings, research, and analysis covering fixed-income securities, other debt instruments, and the entities that issue such instruments in the global capital markets. Moody's Corporation has a market cap of $9.98 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 above the S&P 500 P/E ratio of 17.7. Shares are up 33.3% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Moody's Corporation a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Moody's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, 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.

On the negative front, American Learning ( ALRN), down 28.1%, Trueblue ( TBI), down 15.5%, SuperMedia ( SPMD), down 14.5%, and General Employment ( JOB), down 11.8%, were all laggards within the diversified services industry with Dollar Thrifty Automotive Group ( DTG) 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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