ADT Corporation (ADT): Today's Featured Diversified Services Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

ADT Corporation ( ADT) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 1.4%. By the end of trading, ADT Corporation fell $0.49 (-1.1%) to $43.35 on heavy volume. Throughout the day, 4,716,973 shares of ADT Corporation exchanged hands as compared to its average daily volume of 2,406,500 shares. The stock ranged in price between $43.22-$44.34 after having opened the day at $43.82 as compared to the previous trading day's close of $43.84. Other companies within the Diversified Services industry that declined today were: Corporate Resource Services ( CRRS), down 8.4%, Air Lease ( AL), down 3.9%, Education Management Corporation ( EDMC), down 2.7% and Versar ( VSR), down 2.5%.

The ADT Corporation provides electronic security, interactive home and business automation, and related monitoring services to residential and small business customers in the United States and Canada. ADT Corporation has a market cap of $9.0 billion and is part of the services sector. The company has a P/E ratio of 23.4, above the S&P 500 P/E ratio of 17.7. Shares are down 7.9% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate ADT Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates ADT Corporation as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we find that the company's revenue growth has not been good.

On the positive front, Career Education Corporation ( CECO), up 10.7%, Taomee Holdings ( TAOM), up 10.0%, WidePoint Corporation ( WYY), up 7.5% and Mastech Holdings ( MHH), up 7.4% , were all gainers within the diversified services industry with Fleetcor Technologies ( FLT) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
null

If you liked this article you might like

Simpson Thacher's Klein Balances Big Deals and Great Films

Amazon, Google and Apple Raise the Roof in Battle to Command the Smart Home

Valeant Enlists Former Tyco Exec for More Help With Accounting

Barclays Preps $1.6B Loan for ADT Takeover, the Biggest LBO of 2016

Barclays Preps $1.6B Loan for ADT Takeover, the Biggest LBO of 2016

ADT Stock Downgraded to ‘Neutral’ at Credit Suisse