Fiserv Inc. (FISV): Today's Featured 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.

Fiserv ( FISV) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 1.2%. By the end of trading, Fiserv fell 83 cents (-1%) to $80.40 on average volume. Throughout the day, 980,524 shares of Fiserv exchanged hands as compared to its average daily volume of 786,800 shares. The stock ranged in price between $80.24-$81.96 after having opened the day at $81.19 as compared to the previous trading day's close of $81.23. Other companies within the Services sector that declined today were: FreeSeas ( FREE), down 13%, QKL Stores ( QKLS), down 9%, DLH Holdings ( DLHC), down 8.9%, and Newlead Holdings ( NEWL), down 8.6%.
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Fiserv, Inc., together with its subsidiaries, provides financial services technology solutions worldwide. Fiserv has a market cap of $10.91 billion and is part of the diversified services industry. The company has a P/E ratio of 19.3, above the S&P 500 P/E ratio of 17.7. Shares are up 2.8% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Fiserv a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Fiserv as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and reasonable valuation levels. 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 positive front, Liberty Media Corporation ( LMCB), up 595.5%, Netflix ( NFLX), up 42.2%, Swift Transportation ( SWFT), up 28.4%, and ITT Educational Services ( ESI), up 17.7%, were all gainers within the services sector with Target ( TGT) being today's featured services sector leader.

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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