Visa Inc. (V): 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

Visa ( V) 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, Visa fell $1.96 (-1.1%) to $179.80 on average volume. Throughout the day, 2,467,964 shares of Visa exchanged hands as compared to its average daily volume of 2,980,600 shares. The stock ranged in price between $179.78-$181.74 after having opened the day at $181.74 as compared to the previous trading day's close of $181.76. Other companies within the Diversified Services industry that declined today were: CIBT Education Group ( MBA), down 20.6%, Pointer Telocation ( PNTR), down 15.5%, Genetic Technologies ( GENE), down 10.7% and Industrial Services of America ( IDSA), down 8.0%.
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Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $93.4 billion and is part of the financial sector. The company has a P/E ratio of 49.8, above the S&P 500 P/E ratio of 17.7. Shares are up 19.9% year to date as of the close of trading on Wednesday. Currently there are 19 analysts that rate Visa a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Visa as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Willdan Group ( WLDN), down 10.4%, ENGlobal Corporation ( ENG), down 7.5%, DLH Holdings ( DLHC), down 7.2% and Luna Innovations ( LUNA), down 6.2%.

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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