MasterCard Incorporated (MA): 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.

MasterCard Incorporated ( MA) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 1.9%. By the end of trading, MasterCard Incorporated fell $7.08 (-1.5%) to $464.70 on average volume. Throughout the day, 745,900 shares of MasterCard Incorporated exchanged hands as compared to its average daily volume of 675,900 shares. The stock ranged in price between $461.51-$471.19 after having opened the day at $468.07 as compared to the previous trading day's close of $471.78. Other companies within the Diversified Services industry that declined today were: 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%.
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MasterCard Incorporated, a payments and technology company, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. MasterCard Incorporated has a market cap of $55.54 billion and is part of the services sector. The company has a P/E ratio of 27, above the S&P 500 P/E ratio of 17.7. Shares are up 24.9% year to date as of the close of trading on Tuesday. Currently there are 23 analysts that rate MasterCard Incorporated a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates MasterCard Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, StarTek ( SRT), up 22%, Consolidated Graphics ( CGX), up 14.7%, Mobile Mini ( MINI), up 13.1%, and ENGlobal Corporation ( ENG), up 8.1%, were all gainers within the diversified services industry with Western Union Company ( WU) being today's featured diversified services industry leader.

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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