Moody's Corporation (MCO): Today's Featured 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.

Moody's Corporation ( MCO) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Moody's Corporation fell $0.99 (-1.3%) to $74.49 on average volume. Throughout the day, 745,057 shares of Moody's Corporation exchanged hands as compared to its average daily volume of 940,000 shares. The stock ranged in price between $74.22-$75.89 after having opened the day at $75.53 as compared to the previous trading day's close of $75.48. Other companies within the Services sector that declined today were: InterCloud Systems ( ICLD), down 27.8%, Seanergy Maritime Holdings ( SHIP), down 13.0%, Newlead Holdings ( NEWL), down 10.9% and Lions Gate Entertainment Corporation ( LGF), down 10.5%.

Moody's Corporation provides credit ratings; and credit, capital markets, and economic related research, data, and analytical tools worldwide. Moody's Corporation has a market cap of $16.0 billion and is part of the diversified services industry. The company has a P/E ratio of 22.1, above the S&P 500 P/E ratio of 17.7. Shares are up 50.0% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Moody's Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Moody's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, notable return on equity, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, YRC Worldwide ( YRCW), up 15.2%, China Distance Education Holdings ( DL), up 13.5%, Giant Interactive Group ( GA), up 12.6% and Xueda Education Group ( XUE), up 10.3% , were all gainers within the services sector with Kohl's ( KSS) being today's featured services sector leader.

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).

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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