HMS Holdings Corporation (HMSY): Today's Featured Diversified Services Winner

HMS Holdings Corporation ( HMSY) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 1.7%. By the end of trading, HMS Holdings Corporation rose 20 cents (0.8%) to $24.30 on heavy volume. Throughout the day, 1.7 million shares of HMS Holdings Corporation exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $23.92-$24.44 after having opened the day at $24.07 as compared to the previous trading day's close of $24.10. Other companies within the Diversified Services industry that increased today were: China Yida ( CNYD), up 18.8%, UTEK ( INV), up 16.3%, Fortune Industries ( FFI), up 5.9%, and Universal Security Instruments ( UUU), up 5%.

HMS Holdings Corp. provides cost containment services to government and private healthcare payers and sponsors. The company's services include coordination of benefits and program integrity services. HMS Holdings Corporation has a market cap of $2.08 billion and is part of the services sector. The company has a P/E ratio of 46.5, equal to the average diversified services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 24.6% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate HMS Holdings Corporation a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates HMS Holdings Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, United Rentals ( URI), down 10.8%, CD International ( CDII), down 10%, Food Technology Service ( VIFL), down 9.8%, and PFSweb ( PFSW), down 9.5%, were all losers within the diversified services industry with Accenture ( ACN) being today's diversified services industry loser.

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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