SAIC Inc. (SAI): 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.

SAIC ( SAI) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 0.5%. By the end of trading, SAIC fell 13 cents (-1.1%) to $12.29 on average volume. Throughout the day, 3.1 million shares of SAIC exchanged hands as compared to its average daily volume of three million shares. The stock ranged in price between $12.26-$12.45 after having opened the day at $12.43 as compared to the previous trading day's close of $12.42. Other companies within the Diversified Services industry that declined today were: American Learning ( ALRN), down 17.4%, SuperMedia ( SPMD), down 9.7%, Fortune Industries ( FFI), down 8.7%, and Ambow Education ( AMBO), down 6.5%.
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SAIC, Inc. provides scientific, engineering, systems integration, and technical services and solutions to agencies of the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. SAIC has a market cap of $4.24 billion and is part of the services sector. The company has a P/E ratio of 22.5, above the S&P 500 P/E ratio of 17.7. Shares are up 9.7% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate SAIC a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates SAIC as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, AeroCentury Corporation ( ACY), up 11.7%, Bright Horizons Family Solutions ( BFAM), up 10.1%, WageWorks ( WAGE), up 8%, and VirtualScopics ( VSCP), up 7%, were all gainers within the diversified services industry with KBR ( KBR) 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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