AthenaHealth Inc. (ATHN): Today's Featured Diversified Services Loser

AthenaHealth ( ATHN) pushed the Diversified Services industry lower today making it today's featured Diversified Services loser. The industry as a whole was unchanged today. By the end of trading, AthenaHealth fell $1.22 (-1.5%) to $79.16 on average volume. Throughout the day, 469,089 shares of AthenaHealth exchanged hands as compared to its average daily volume of 449,200 shares. The stock ranged in price between $78.88-$81.85 after having opened the day at $80.60 as compared to the previous trading day's close of $80.38. Other company's within the Diversified Services industry that declined today were: Lime Energy ( LIME), down 44.8%, New Oriental Education & Technology Group I ( EDU), down 34.3%, Fortune Industries ( FFI), down 11.8%, and TAL Education Group ( XRS), down 9%.

athenahealth, Inc., a business services company, provides ongoing billing, clinical-related, and other related services to medical group practices primarily in the United States. The company provides services through the athenaNet, a proprietary Internet-based practice management application. AthenaHealth has a market cap of $2.93 billion and is part of the services sector. The company has a P/E ratio of 157.4, below the average diversified services industry P/E ratio of 160.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 66.6% year to date as of the close of trading on Monday. Currently there are five analysts that rate AthenaHealth a buy, three analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates AthenaHealth as a hold. 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and premium valuation.

On the positive front, Digital Generation ( DGIT), up 22.8%, Odyssey Marine Exploration ( OMEX), up 17.1%, American Reprographics Company ( ARP), up 16.9%, and Oxygen Biotherapeutics ( OXBT), up 16.7%, were all gainers within the diversified services industry with Paychex ( PAYX) being today's featured diversified services industry winner.

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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