Western Union Company (WU): 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.

Western Union Company ( WU) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole was unchanged today. By the end of trading, Western Union Company fell $0.17 (-1.0%) to $16.67 on average volume. Throughout the day, 5,882,805 shares of Western Union Company exchanged hands as compared to its average daily volume of 7,110,400 shares. The stock ranged in price between $16.65-$16.85 after having opened the day at $16.83 as compared to the previous trading day's close of $16.84. Other companies within the Diversified Services industry that declined today were: InterCloud Systems ( ICLD), down 27.8%, Hackett Group ( HCKT), down 6.6%, Daegis ( DAEG), down 6.4% and YY ( YY), down 5.9%.

The Western Union Company provides money movement and payment services worldwide. The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions. The Consumer-to-Consumer segment offers cash money transfer services involving walk-in agent locations. Western Union Company has a market cap of $9.2 billion and is part of the financial sector. The company has a P/E ratio of 11.0, below the S&P 500 P/E ratio of 17.7. Shares are up 23.7% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Western Union Company a buy, 3 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Western Union Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, China Distance Education Holdings ( DL), up 13.5%, Giant Interactive Group ( GA), up 12.6%, Xueda Education Group ( XUE), up 10.3% and Cambium Learning Group ( ABCD), up 9.7% , were all gainers within the diversified services industry with Avis Budget Group ( CAR) 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.
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