SAIC Inc. (SAI): Today's Featured Diversified Services Winner

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 higher today making it today's featured diversified services winner. The industry as a whole closed the day down 0.2%. By the end of trading, SAIC rose $0.33 (2.3%) to $14.55 on average volume. Throughout the day, 4,196,269 shares of SAIC exchanged hands as compared to its average daily volume of 3,887,100 shares. The stock ranged in a price between $14.19-$14.65 after having opened the day at $14.23 as compared to the previous trading day's close of $14.22. Other companies within the Diversified Services industry that increased today were: Education Management Corporation ( EDMC), up 11.8%, Ryder System ( R), up 6.8%, Euronet Worldwide ( EEFT), up 6.7% and Xueda Education Group ( XUE), up 6.1%.
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SAIC, Inc. provides scientific, engineering, systems integration, and technical services and solutions in the areas of defense, health, energy, infrastructure, intelligence, surveillance, reconnaissance, and cybersecurity to agencies of the U.S. SAIC has a market cap of $4.9 billion and is part of the services sector. The company has a P/E ratio of 9.2, below the S&P 500 P/E ratio of 17.7. Shares are up 25.6% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates SAIC as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, DeVry ( DV), down 20.4%, Robert Half International ( RHI), down 9.7%, VirtualScopics ( VSCP), down 8.8% and Spark Networks ( LOV), down 8.4% , were all laggards within the diversified services industry with Fleetcor Technologies ( FLT) 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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