Global Payments Inc. (GPN): 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

Global Payments ( GPN) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Global Payments fell $0.85 (-1.8%) to $45.87 on heavy volume. Throughout the day, 1,465,859 shares of Global Payments exchanged hands as compared to its average daily volume of 849,100 shares. The stock ranged in price between $45.78-$47.10 after having opened the day at $47.00 as compared to the previous trading day's close of $46.72. Other companies within the Diversified Services industry that declined today were: Education Management Corporation ( EDMC), down 10.2%, VirtualScopics ( VSCP), down 8.8%, ITT Educational Services ( ESI), down 5.6% and Avis Budget Group ( CAR), down 5.3%.
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Global Payments Inc. Global Payments has a market cap of $3.7 billion and is part of the services sector. The company has a P/E ratio of 20.9, above the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Global Payments a buy, 2 analysts rate 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, increase in stock price during the past year, reasonable valuation levels, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, ENGlobal Corporation ( ENG), down 17.5%, Fortune Industries ( FFI), down 15.0%, National Research Corporation ( NRCIB), down 13.3% and MGT Capital Investments ( MGT), down 11.2% , were all gainers within the diversified services industry with Paychex ( PAYX) 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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