Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 154 points (1.2%) at 12,742 as of Monday, Nov. 19, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 2,629 issues advancing vs. 338 declining with 70 unchanged. The Diversified Services industry currently sits up 1.0% versus the S&P 500, which is up 1.5%. Top gainers within the industry include MasterCard Incorporated ( MA), up 1.6%, Visa ( V), up 1.6%, SBA Communications ( SBAC), up 1.5% and Accenture ( ACN), up 1.0%. TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today: 3. K12 ( LRN) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, K12 is down $2.24 (-10.9%) to $18.21 on heavy volume Thus far, 563,249 shares of K12 exchanged hands as compared to its average daily volume of 312,700 shares. The stock has ranged in price between $17.86-$19.81 after having opened the day at $19.72 as compared to the previous trading day's close of $20.45. K12, Inc., a technology-based education company, offers proprietary curriculum, software systems, and educational services to facilitate individualized learning for students in kindergarten through 12th grade in the United States and internationally. K12 has a market cap of $727.1 million and is part of the services sector. The company has a P/E ratio of 44.8, above the S&P 500 P/E ratio of 17.7. Shares are up 14.0% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate K12 a buy, no analysts rate it a sell, and none rate it a hold. TheStreet Ratings rates K12 as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Get the full K12 Ratings Report now.
Investors considering a purchase of K12 Inc stock, but cautious about paying the going market price of $10.64/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the June put at the $7.50 strike, which has a bid at the time of this writing of 25 cents.