Apollo Group Inc (APOL): 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.

Apollo Group ( APOL) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.1%. By the end of trading, Apollo Group rose $1.47 (7.7%) to $20.53 on average volume. Throughout the day, 3.7 million shares of Apollo Group exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in a price between $19.07-$20.60 after having opened the day at $19.14 as compared to the previous trading day's close of $19.06. Other companies within the Services sector that increased today were: LodgeNet Interactive Corporation ( LNET), up 32.7%, Sino-Global Shipping America ( SINO), up 21.1%, DS Torm ( TRMD), up 18.9%, and Education Management Corporation ( EDMC), up 14.7%.
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Apollo Group, Inc., through its subsidiaries, provides online and on-campus educational programs and services at the undergraduate, master's, and doctoral levels. Apollo Group has a market cap of $2.15 billion and is part of the diversified services industry. The company has a P/E ratio of six, below the S&P 500 P/E ratio of 17.7. Shares are down 64.4% year to date as of the close of trading on Monday. Currently there are six analysts that rate Apollo Group a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Apollo Group as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

On the negative front, Net one Ueps Technologies ( UEPS), down 58.9%, Fortune Industries ( FFI), down 21.1%, ChinaNet Online Holdings ( CNET), down 17%, and Coastal Contacts ( COA), down 11.5%, were all laggards within the services sector with Las Vegas Sands ( LVS) 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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