3 Stocks Pushing The Diversified Services Industry Lower

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.

2. As of noon trading, Acacia Research Coroporation ( ACTG) is down $1.73 (-7.4%) to $21.71 on heavy volume Thus far, 604,540 shares of Acacia Research Coroporation exchanged hands as compared to its average daily volume of 636,300 shares. The stock has ranged in price between $21.65-$23.87 after having opened the day at $23.82 as compared to the previous trading day's close of $23.44.

Acacia Research Corporation, through its subsidiaries, acquires, develops, licenses, and enforces patented technologies in the United States. Acacia Research Coroporation has a market cap of $1.1 billion and is part of the services sector. The company has a P/E ratio of 24.0, above the S&P 500 P/E ratio of 17.7. Shares are down 35.8% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate Acacia Research Coroporation a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Acacia Research Coroporation as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Acacia Research Coroporation Ratings Report now.

1. As of noon trading, Verisk Analytics ( VRSK) is down $0.53 (-1.1%) to $47.56 on average volume Thus far, 259,558 shares of Verisk Analytics exchanged hands as compared to its average daily volume of 662,800 shares. The stock has ranged in price between $47.54-$48.65 after having opened the day at $48.40 as compared to the previous trading day's close of $48.09.

Verisk Analytics, Inc. provides proprietary data, analytics methods, and embedded decision support solutions for detecting fraud in property and casualty (P&C) insurance, mortgage, and healthcare industries primarily in the United States. Verisk Analytics has a market cap of $8.0 billion and is part of the services sector. The company has a P/E ratio of 25.0, above the S&P 500 P/E ratio of 17.7. Shares are up 19.5% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Verisk Analytics a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Verisk Analytics as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Verisk Analytics Ratings Report now.

If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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