Western Union Company (WU): 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.

Western Union Company ( WU) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 1.9%. By the end of trading, Western Union Company rose 14 cents (1.1%) to $12.55 on heavy volume. Throughout the day, 17.4 million shares of Western Union Company exchanged hands as compared to its average daily volume of 6.6 million shares. The stock ranged in a price between $12.30-$12.56 after having opened the day at $12.48 as compared to the previous trading day's close of $12.41. Other companies within the Diversified Services industry that increased today were: StarTek ( SRT), up 22%, Consolidated Graphics ( CGX), up 14.7%, Mobile Mini ( MINI), up 13.1%, and ENGlobal Corporation ( ENG), up 8.1%.
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The Western Union Company provides money movement and payment services worldwide. The company operates in two segments, Consumer-to-Consumer and Global Business Payments. Western Union Company has a market cap of $7.36 billion and is part of the services sector. The company has a P/E ratio of six, below the S&P 500 P/E ratio of 17.7. Shares are down 33.1% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Western Union Company a buy, four analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Western Union Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Furmanite Corporation ( FRM), down 18.7%, Cambium Learning Group ( ABCD), down 16.1%, Higher One Holdings ( ONE), down 14.5%, and Infinity Pharmaceuticals ( INFI), down 11.9%, were all laggards within the diversified services industry with MasterCard Incorporated ( MA) 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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