Visa Inc. (V): 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.

Visa ( V) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Visa fell $3.38 (-1.6%) to $201.75 on average volume. Throughout the day, 4,214,917 shares of Visa exchanged hands as compared to its average daily volume of 3,026,100 shares. The stock ranged in price between $199.93-$202.60 after having opened the day at $200.20 as compared to the previous trading day's close of $205.13. Other companies within the Diversified Services industry that declined today were: PowerSecure International ( POWR), down 10.7%, WidePoint Corporation ( WYY), down 8.9%, China HGS Real Estate ( HGSH), down 8.2% and Mastech Holdings ( MHH), down 7.4%.

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $103.1 billion and is part of the financial sector. The company has a P/E ratio of 26.8, above the S&P 500 P/E ratio of 17.7. Shares are up 35.3% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate Visa a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Visa as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Luna Innovations ( LUNA), up 15.4%, Industrial Services of America ( IDSA), up 14.3%, Acorn Energy ( ACFN), up 5.6% and Kratos Defense & Security Solutions ( KTOS), up 5.5% , were all gainers within the diversified services industry with Western Union Company ( WU) 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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