Moody's Corporation (MCO): 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.

Moody's Corporation ( MCO) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.2%. By the end of trading, Moody's Corporation rose 55 cents (1.2%) to $46.42 on average volume. Throughout the day, 1.4 million shares of Moody's Corporation exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in a price between $45.60-$46.93 after having opened the day at $46.04 as compared to the previous trading day's close of $45.87. Other companies within the Services sector that increased today were: Pizza Inn Holdings ( PZZI), up 20.9%, Point.360 ( PTSX), up 18.7%, iParty Corporation ( IPT), up 17.6%, and Cambium Learning Group ( ABCD), up 14.3%.
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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 $10.25 billion and is part of the diversified services industry. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 36.5% year to date as of the close of trading on Friday. 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, growth in earnings per share, increase in net income and expanding profit margins. 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, LodgeNet Interactive Corporation ( LNET), down 51.4%, ( BIDZ), down 42.6%, ENGlobal Corporation ( ENG), down 16.4%, and J.C. Penney ( JCP), down 12.9%, were all laggards within the services sector with Time Warner Cable ( TWC) 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).

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