Ctrip.com International Ltd. (CTRP): 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.

Ctrip.com International ( CTRP) 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, Ctrip.com International rose 41 cents (2.1%) to $19.51 on light volume. Throughout the day, 1.3 million shares of Ctrip.com International exchanged hands as compared to its average daily volume of three million shares. The stock ranged in a price between $19.20-$19.96 after having opened the day at $19.23 as compared to the previous trading day's close of $19.10. Other companies within the Services sector that increased today were: CIBT Education Group ( MBA), up 29.4%, Cambium Learning Group ( ABCD), up 17.2%, China Distance Education Holdings ( DL), up 15.1%, and PokerTek ( PTEK), up 13.9%.
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Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, airline tickets, and packaged tours in the People's Republic of China. Ctrip.com International has a market cap of $2.69 billion and is part of the leisure industry. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are down 18.4% year to date as of the close of trading on Friday. Currently there are three analysts that rate Ctrip.com International a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Ctrip.com International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

On the negative front, DS Torm ( TRMD), down 19.9%, LodgeNet Interactive Corporation ( LNET), down 14.7%, Innovaro ( INV), down 13%, and WidePoint Corporation ( WYY), down 12.2%, were all laggards within the services sector with Target ( TGT) 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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