Ryder System Inc (R): 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

Ryder System ( R) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 1.4%. By the end of trading, Ryder System fell $3.96 (-6.9%) to $53.31 on heavy volume. Throughout the day, 3,042,685 shares of Ryder System exchanged hands as compared to its average daily volume of 614,600 shares. The stock ranged in price between $52.58-$57.70 after having opened the day at $56.47 as compared to the previous trading day's close of $57.27. Other companies within the Diversified Services industry that declined today were: Daegis ( DAEG), down 9.4%, Rent-A-Center ( RCII), down 5.8%, UniTek Global Services ( UNTK), down 5.5% and World Energy Solutions ( XWES), down 4.7%.
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Ryder System, Inc. provides transportation and supply chain management solutions. It operates in two segments, Fleet Management Solutions (FMS) and Supply Chain Solutions (SCS). Ryder System has a market cap of $3.0 billion and is part of the services sector. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are up 14.5% year to date as of the close of trading on Monday.

TheStreet Ratings rates Ryder System as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and attractive valuation levels. 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, Capella Education Company ( CPLA), down 18.1%, VirtualScopics ( VSCP), down 15.2%, PowerSecure International ( POWR), down 12.1% and Luna Innovations ( LUNA), down 10.6% , 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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