Fleetcor Technologies Inc. (FLT): 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

Fleetcor Technologies ( FLT) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Fleetcor Technologies fell $1.26 (-1.5%) to $81.58 on light volume. Throughout the day, 533,192 shares of Fleetcor Technologies exchanged hands as compared to its average daily volume of 830,400 shares. The stock ranged in price between $81.36-$83.05 after having opened the day at $83.05 as compared to the previous trading day's close of $82.84. Other companies within the Diversified Services industry that declined today were: LivePerson ( LPSN), down 36.3%, Luna Innovations ( LUNA), down 7.5%, Acorn Energy ( ACFN), down 6.4% and Performant Financial ( PFMT), down 6.0%.
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FleetCor Technologies, Inc. provides fuel cards and workforce payment products and services to businesses, commercial fleets, oil companies, petroleum marketers, and government entities in North America, Latin America, and Europe. Fleetcor Technologies has a market cap of $6.7 billion and is part of the services sector. The company has a P/E ratio of 29.1, above the S&P 500 P/E ratio of 17.7. Shares are up 54.4% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Fleetcor Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Fleetcor Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. 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, VirtualScopics ( VSCP), down 10.2%, Collectors Universe ( CLCT), down 9.4%, Bioanalytical Systems ( BASI), down 7.3% and Heidrick & Struggles International ( HSII), down 6.7% , were all gainers within the diversified services industry with Western Union Company ( WU) 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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