Global Payments Inc. (GPN): Today's Featured Diversified Services Winner

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

Global Payments ( GPN) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 0.7%. By the end of trading, Global Payments rose $1.12 (2.4%) to $48.00 on average volume. Throughout the day, 1,232,763 shares of Global Payments exchanged hands as compared to its average daily volume of 839,400 shares. The stock ranged in a price between $46.78-$48.13 after having opened the day at $46.85 as compared to the previous trading day's close of $46.88. Other companies within the Diversified Services industry that increased today were: Stewart ( STEI), up 33.2%, National Research Corporation ( NRCIB), up 24.4%, China HGS Real Estate ( HGSH), up 10.3% and Carriage Services ( CSV), up 8.9%.
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Global Payments Inc. Global Payments has a market cap of $3.6 billion and is part of the services sector. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are up 4.0% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Global Payments a buy, 1 analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Global Payments as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, increase in net income, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, CIBT Education Group ( MBA), down 26.4%, Fortune Industries ( FFI), down 11.8%, General Employment ( JOB), down 9.1% and Command Security Corporation ( MOC), down 6.7% , were all laggards within the diversified services industry with SBA Communications ( SBAC) being today's diversified services industry laggard.

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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