Leucadia National Corporation (LUK): Today's Featured Conglomerates 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

Leucadia National Corporation ( LUK) pushed the Conglomerates sector lower today making it today's featured Conglomerates laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Leucadia National Corporation fell $0.70 (-2.2%) to $30.58 on average volume. Throughout the day, 2,311,978 shares of Leucadia National Corporation exchanged hands as compared to its average daily volume of 1,951,400 shares. The stock ranged in price between $30.38-$30.85 after having opened the day at $30.85 as compared to the previous trading day's close of $31.28. Other companies within the Conglomerates sector that declined today were: ROI Acquisition ( ROIQ), down 2.5%, Harbinger Group ( HRG), down 2.3%, Hemisphere Media Group ( HMTVA), down 2.1% and Hemisphere Media Group ( HMTV), down 2.1%.
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Leucadia National Corporation engages in investment banking, beef processing, manufacturing, telecommunications, gaming, real estate, energy, medical product development, and winery operations in the United States and internationally. Leucadia National Corporation has a market cap of $11.5 billion and is part of the food & beverage industry. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 32.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Leucadia National Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Dex Media ( DXM), down 3.5%, Global Eagle Acquisition ( EAGL), down 1.7%, Global Eagle Entertainment ( ENT), down 1.7% and Lydall ( LDL), down 1.7%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the conglomerates sector could consider SPDR Trust Series 1 ( SPY) while those bearish on the conglomerates sector could consider ProShares Short S&P 500 ( SH).

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