Weight Watchers International Inc. (WTW): 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.

Weight Watchers International ( WTW) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 1%. By the end of trading, Weight Watchers International fell $1.16 (-2.7%) to $41.25 on average volume. Throughout the day, 928,865 shares of Weight Watchers International exchanged hands as compared to its average daily volume of 844,200 shares. The stock ranged in price between $41.01-$42.80 after having opened the day at $42.53 as compared to the previous trading day's close of $42.41. Other companies within the Diversified Services industry that declined today were: Luna Innovations ( LUNA), down 9.4%, Swisher Hygiene ( SWSH), down 9%, DLH Holdings ( DLHC), down 8.3%, and Daegis ( DAEG), down 7%.
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Weight Watchers International, Inc. engages in the provision of weight management services primarily in North America, the United Kingdom, Continental Europe, Australia, and New Zealand. Weight Watchers International has a market cap of $2.38 billion and is part of the services sector. The company has a P/E ratio of 10.1, below the S&P 500 P/E ratio of 17.7. Shares are down 19% year to date as of the close of trading on Thursday. Currently there is one analyst that rates Weight Watchers International a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Weight Watchers International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the positive front, Acquity Group Ltd ADR ( AQ), up 37.8%, Information Services Group ( III), up 26.4%, PowerSecure International ( POWR), up 11.6%, and SuperMedia ( SPMD), up 11.5%, were all gainers within the diversified services industry with Moody's Corporation ( MCO) 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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