Western Union Company (WU): 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.

Western Union Company ( WU) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Western Union Company fell 25 cents (-2%) to $12.49 on heavy volume. Throughout the day, 17.2 million shares of Western Union Company exchanged hands as compared to its average daily volume of 8.1 million shares. The stock ranged in price between $12.28-$12.55 after having opened the day at $12.46 as compared to the previous trading day's close of $12.74. Other companies within the Diversified Services industry that declined today were: RLJ Entertainment ( RLJE), down 10.8%, Innovaro ( INV), down 10.1%, ENGlobal Corporation ( ENG), down 10%, and Harris Interactive ( HPOL), down 6.9%.
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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 $7.58 billion and is part of the services sector. The company has a P/E ratio of 6.3, below the S&P 500 P/E ratio of 17.7. Shares are down 30.4% year to date as of the close of trading on Monday. Currently there are three analysts that rate Western Union Company a buy, three analysts rate it a sell, and 18 rate it a hold.

TheStreet Ratings rates Western Union Company as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

On the positive front, School Specialty ( SCHS), up 15.6%, China HGS Real Estate ( HGSH), up 10.9%, Zipcar ( ZIP), up 7.1%, and Shutterstock ( SSTK), up 5.7%, were all gainers within the diversified services industry with Fortune Brands Home & Security ( FBHS) 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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