McGraw Hill Financial Inc (MHP): 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

McGraw Hill Financial ( MHP) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 1.0%. By the end of trading, McGraw Hill Financial fell $0.71 (-1.3%) to $54.99 on light volume. Throughout the day, 1,435,247 shares of McGraw Hill Financial exchanged hands as compared to its average daily volume of 2,162,400 shares. The stock ranged in price between $54.88-$55.65 after having opened the day at $55.48 as compared to the previous trading day's close of $55.70. Other companies within the Diversified Services industry that declined today were: Team ( TISI), down 16.8%, WidePoint Corporation ( WYY), down 8.4%, Barrett Business Services ( BBSI), down 6.8% and Luna Innovations ( LUNA), down 5.9%.
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The McGraw-Hill Companies, Inc. provides information services for the financial, commodities and commercial, and education markets worldwide. McGraw Hill Financial has a market cap of $15.1 billion and is part of the services sector. The company has a P/E ratio of 23.5, above the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate McGraw Hill Financial a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates McGraw Hill Financial as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Acquity Group Ltd ADR ( AQ), down 113.6%, Websense ( WBSN), down 28.8%, Genetic Technologies ( GENE), down 14.4% and Daegis ( DAEG), down 13.1% , were all gainers within the diversified services industry with Fleetcor Technologies ( FLT) 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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