R.R. Donnelley & Sons Company (RRD): Diversified Services' Featured Underachiever Of The Day

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.

R.R. Donnelley & Sons Company ( RRD) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 1.8%. By the end of trading, R.R. Donnelley & Sons Company fell 16 cents (-1.3%) to $11.92 on light volume. Throughout the day, 1.4 million shares of R.R. Donnelley & Sons Company exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $11.88-$12.18 after having opened the day at $12.09 as compared to the previous trading day's close of $12.08. Other companies within the Diversified Services industry that declined today were: 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%.
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R.R. Donnelley & Sons Company provides integrated communication solutions to private and public sectors worldwide. R.R. Donnelley & Sons Company has a market cap of $2.08 billion and is part of the services sector. Shares are up 34.4% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate R.R. Donnelley & Sons Company a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates R.R. Donnelley & Sons Company as a hold. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the positive front, Digital Generation ( DGIT), up 8.3%, Envestnet ( ENV), up 8.1%, VistaPrint ( VPRT), up 6.8%, and StarTek ( SRT), up 6.8%, were all gainers within the diversified services industry with Visa ( V) 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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