Visa Inc. (V): Today's Favorite Diversified Services Gainer

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.

Visa ( V) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 1.8%. By the end of trading, Visa rose $2.24 (1.4%) to $166.99 on light volume. Throughout the day, 2.2 million shares of Visa exchanged hands as compared to its average daily volume of three million shares. The stock ranged in a price between $164.97-$167.30 after having opened the day at $164.97 as compared to the previous trading day's close of $164.75. Other companies within the Diversified Services industry that increased today were: Digital Generation ( DGIT), up 8.3%, Envestnet ( ENV), up 8.1%, VistaPrint ( VPRT), up 6.8%, and StarTek ( SRT), up 6.8%.
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Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $88.03 billion and is part of the services sector. The company has a P/E ratio of 46.2, above the S&P 500 P/E ratio of 17.7. Shares are up 8.7% year to date as of the close of trading on Tuesday. Currently there are 20 analysts that rate Visa a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Visa 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, ENGlobal Corporation ( ENG), down 11.9%, Taomee Holdings ( TAOM), down 6.4%, Daegis ( DAEG), down 3.8%, and Cinedigm Digital Cinema ( CIDM), down 2.7%, were all laggards within the diversified services industry with R.R. Donnelley & Sons Company ( RRD) being today's diversified services industry laggard.

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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