SFN Group Inc. (SFN): 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

SFN Group ( SFN) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 0.4%. By the end of trading, SFN Group fell $0.31 (-1.2%) to $26.45 on light volume. Throughout the day, 5,388 shares of SFN Group exchanged hands as compared to its average daily volume of 1,683,800 shares. The stock ranged in price between $26.45-$26.64 after having opened the day at $26.64 as compared to the previous trading day's close of $26.76. Other companies within the Diversified Services industry that declined today were: Computer Sciences Corporation ( CSC), down 9.7%, Willdan Group ( WLDN), down 9.4%, Hudson Global ( HSON), down 9.1% and Innotrac Corporation ( INOC), down 7.2%.
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SFN Group, Inc., through its subsidiaries, operates as a strategic workforce solutions provider in the United States and Canada. It offers professional and staffing services, which include temporary staffing, outsourcing and other, and permanent placement services. SFN Group has a market cap of $686.9 million and is part of the services sector. The company has a P/E ratio of 27.5, above the S&P 500 P/E ratio of 17.7. Shares are up 43.4% year to date as of the close of trading on Tuesday. Currently there are no analysts that rate SFN Group a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates SFN Group as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the positive front, Genetic Technologies ( GENE), down 21.9%, Consolidated Graphics ( CGX), down 13.0%, Bioanalytical Systems ( BASI), down 10.5% and Xueda Education Group ( XUE), down 8.2% , were all gainers within the diversified services industry with H&R Block ( HRB) 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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