5 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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 12,892 as of Wednesday, Nov. 28, 2012, 12:00 PM ET. The NYSE advances/declines ratio sits at 1,435 issues advancing vs. 1,435 declining with 148 unchanged.

The Diversified Services industry currently sits down 0.2% versus the S&P 500, which is down 0.0%. On the negative front, top decliners within the industry include Universal Technical Institute ( UTI), down 22.1%, CAI International ( CAP), down 7.8%, Myriad Genetics ( MYGN), down 3.0%, R.R. Donnelley & Sons Company ( RRD), down 2.3% and HMS Holdings Corporation ( HMSY), down 2.3%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Mercadolibre ( MELI) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Mercadolibre is down $3.00 (-4.1%) to $70.59 on heavy volume Thus far, 816,514 shares of Mercadolibre exchanged hands as compared to its average daily volume of 546,600 shares. The stock has ranged in price between $69.73-$73.40 after having opened the day at $72.93 as compared to the previous trading day's close of $73.59.

MercadoLibre, Inc., together with its subsidiaries, hosts online commerce and payments platforms in Latin America. Its services are designed to provide its users with mechanisms to buy, sell, pay for, and collect on e-commerce transactions. Mercadolibre has a market cap of $3.3 billion and is part of the services sector. The company has a P/E ratio of 35.4, above the S&P 500 P/E ratio of 17.7. Shares are down 6.7% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Mercadolibre 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, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Mercadolibre Ratings Report now.

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4. As of noon trading, Weight Watchers International ( WTW) is down $1.88 (-3.4%) to $53.51 on heavy volume Thus far, 1.2 million shares of Weight Watchers International exchanged hands as compared to its average daily volume of 726,500 shares. The stock has ranged in price between $53.46-$55.35 after having opened the day at $55.02 as compared to the previous trading day's close of $55.39.

Weight Watchers International, Inc. engages in the provision of weight management services primarily in North America, the United Kingdom, Continental Europe, Australia, and New Zealand. Weight Watchers International has a market cap of $3.1 billion and is part of the services sector. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates Weight Watchers International a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Weight Watchers International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins 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 Weight Watchers International Ratings Report now.

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3. As of noon trading, KBR ( KBR) is down $0.56 (-2.0%) to $27.13 on average volume Thus far, 996,995 shares of KBR exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $26.87-$27.54 after having opened the day at $27.37 as compared to the previous trading day's close of $27.69.

KBR, Inc. operates as an engineering, construction, and services company worldwide. KBR has a market cap of $4.1 billion and is part of the services sector. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are down 0.6% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate KBR a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates KBR as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full KBR Ratings Report now.

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2. As of noon trading, H&R Block ( HRB) is down $0.13 (-0.7%) to $17.99 on light volume Thus far, 540,531 shares of H&R Block exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $17.89-$18.06 after having opened the day at $18.04 as compared to the previous trading day's close of $18.12.

H&R Block, Inc., through its subsidiaries, engages in the provision of tax preparation and related services to the general public in the United States, Canada, and Australia. H&R Block has a market cap of $4.9 billion and is part of the services sector. The company has a P/E ratio of 15.5, below the S&P 500 P/E ratio of 17.7. Shares are up 10.8% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate H&R Block a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates H&R Block as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and notable return on equity. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full H&R Block Ratings Report now.

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1. As of noon trading, SBA Communications ( SBAC) is down $0.32 (-0.5%) to $67.12 on light volume Thus far, 288,938 shares of SBA Communications exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $66.38-$67.34 after having opened the day at $67.09 as compared to the previous trading day's close of $67.44.

SBA Communications Corporation owns and operates wireless communications towers primarily in the United States, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua, and Panama. SBA Communications has a market cap of $8.5 billion and is part of the services sector. Shares are up 56.5% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate SBA Communications a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates SBA Communications as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and feeble growth in the company's earnings per share. Get the full SBA Communications Ratings Report now.

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If you are interested in one of these 5 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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