McGraw-Hill Companies Incorporated (MHP): Today's Featured 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.

McGraw-Hill Companies Incorporated ( MHP) pushed the Services sector higher today making it today's featured services winner. The sector as a whole was unchanged today. By the end of trading, McGraw-Hill Companies Incorporated rose $1.12 (2%) to $56.03 on average volume. Throughout the day, 2.3 million shares of McGraw-Hill Companies Incorporated exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in a price between $54.84-$56.32 after having opened the day at $55.05 as compared to the previous trading day's close of $54.91. Other companies within the Services sector that increased today were: American Learning ( ALRN), up 27.5%, LodgeNet Interactive Corporation ( LNET), up 25.7%, DeVry ( DV), up 24.9%, and Stamps.com ( STMP), up 20.2%.
  • 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.

The McGraw-Hill Companies, Inc. provides information services for the financial, education, commercial, and commodities markets worldwide. McGraw-Hill Companies Incorporated has a market cap of $15.32 billion and is part of the media industry. The company has a P/E ratio of 19.1, above the average media industry P/E ratio of 17.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 21.6% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate McGraw-Hill Companies Incorporated a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates McGraw-Hill Companies Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Constant Contact ( CTCT), down 29.9%, HMS Holdings Corporation ( HMSY), down 23.4%, Regis Corporation ( RGS), down 16.3%, and Innovaro ( INV), down 16%, were all laggards within the services sector with TJX Companies ( TJX) being today's services sector laggard.

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.
null

If you liked this article you might like

Icahn, Ackman and You? Investing LIke an Activist Not So Easy

Buybacks and Dividends: A Powerful Combination

FISV, PAYX, MHP, ULTA And MA, 5 Diversified Services Stocks Pushing The Industry Lower

McGraw Hill Financial Inc (MHP): Today's Featured Media Winner

5 Stocks Going Ex-Dividend Tomorrow: SLF, DST, DB, MHP, PRU