SAIC Inc. (SAI): 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

SAIC ( SAI) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 0.7%. By the end of trading, SAIC rose $0.34 (2.3%) to $14.84 on heavy volume. Throughout the day, 6,761,095 shares of SAIC exchanged hands as compared to its average daily volume of 3,519,400 shares. The stock ranged in a price between $14.58-$15.06 after having opened the day at $14.63 as compared to the previous trading day's close of $14.50. Other companies within the Diversified Services industry that increased today were: Heidrick & Struggles International ( HSII), up 19.7%, Education Management Corporation ( EDMC), up 13.8%, WidePoint Corporation ( WYY), up 12.8% and DLH Holdings ( DLHC), up 9.3%.
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SAIC, Inc. provides scientific, engineering, systems integration, and technical services and solutions in the areas of defense, health, energy, infrastructure, intelligence, surveillance, reconnaissance, and cybersecurity to agencies of the U.S. SAIC has a market cap of $5.2 billion and is part of the technology sector. The company has a P/E ratio of 9.9, below the S&P 500 P/E ratio of 17.7. Shares are up 28.1% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate SAIC a buy, 2 analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates SAIC as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, National Research Corporation ( NRCIB), down 20.9%, SmartPros ( SPRO), down 8.1%, Document Security Systems ( DSS), down 6.5% and UniTek Global Services ( UNTK), down 6.3% , were all laggards within the diversified services industry with Hertz Global Holdings ( HTZ) 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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