Moody's Corporation (MCO): 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.

Moody's Corporation ( MCO) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Moody's Corporation fell $4.36 (-8.8%) to $45.09 on heavy volume. Throughout the day, 22.4 million shares of Moody's Corporation exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $42.71-$50.03 after having opened the day at $50.02 as compared to the previous trading day's close of $49.45. Other companies within the Diversified Services industry that declined today were: School Specialty ( SCHS), down 14.9%, ATA ( ATAI), down 9%, Ambow Education ( AMBO), down 6.7%, and VirtualScopics ( VSCP), down 5.3%.
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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 $12.34 billion and is part of the services sector. The company has a P/E ratio of 20, above the S&P 500 P/E ratio of 17.7. Shares are down 1.7% year to date as of the close of trading on Monday. 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 positive front, Carbonite ( CARB), up 11.4%, Learning Tree International ( LTRE), up 10.5%, Viad Corporation ( VVI), up 9.2%, and AECOM Technology Corporation ( ACM), up 7.7%, were all gainers within the diversified services industry with MasterCard Incorporated ( MA) 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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