New Oriental Education & Technology Group I (EDU): Today's Featured 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

New Oriental Education & Technology Group I ( EDU) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.9%. By the end of trading, New Oriental Education & Technology Group I rose $0.40 (1.9%) to $21.86 on heavy volume. Throughout the day, 3,891,583 shares of New Oriental Education & Technology Group I exchanged hands as compared to its average daily volume of 2,038,000 shares. The stock ranged in a price between $21.05-$22.04 after having opened the day at $21.05 as compared to the previous trading day's close of $21.46. Other companies within the Services sector that increased today were: Stewart ( STEI), up 33.2%, National Research Corporation ( NRCIB), up 24.4%, Liberty Media Corporation ( LMCAD), up 12.3% and Liberty Media Corporation ( LMCA), up 12.3%.
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New Oriental Education & Technology Group Inc. provides private educational services primarily in China. New Oriental Education & Technology Group I has a market cap of $3.2 billion and is part of the diversified services industry. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are up 10.6% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate New Oriental Education & Technology Group I a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates New Oriental Education & Technology Group I as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

On the negative front, CIBT Education Group ( MBA), down 26.4%, Orbitz Worldwide ( OWW), down 16.8%, Fortune Industries ( FFI), down 11.8% and Birks & Mayors ( BMJ), down 10.3% , were all laggards within the services sector with News Corporation ( NWSA) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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