Alliance Data Systems Corporation (ADS): Today's Featured Diversified Services Winner

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.

Alliance Data Systems Corporation ( ADS) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 1.4%. By the end of trading, Alliance Data Systems Corporation rose $1.90 (1.4%) to $142.13 on average volume. Throughout the day, 438,528 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 542,100 shares. The stock ranged in a price between $140-$142.47 after having opened the day at $140 as compared to the previous trading day's close of $140.23. Other companies within the Diversified Services industry that increased today were: China HGS Real Estate ( HGSH), up 50%, Infoblox ( BLOX), up 29.5%, Amrep Corporation ( AXR), up 21.7%, and Education Management Corporation ( EDMC), up 11.3%.
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Alliance Data Systems Corporation provides loyalty and marketing solutions primarily in North America. The company creates and deploys customized solutions. Alliance Data Systems Corporation has a market cap of $6.96 billion and is part of the services sector. The company has a P/E ratio of 21.7, above the S&P 500 P/E ratio of 17.7. Shares are up 35% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Alliance Data Systems Corporation a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Alliance Data Systems Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, EnviroStar ( EVI), down 11.2%, Fortune Industries ( FFI), down 9.5%, Cambium Learning Group ( ABCD), down 8.8%, and Oxygen Biotherapeutics ( OXBT), down 8.6%, were all laggards within the diversified services industry with Ulta Salon Cosmetics & Fragrances ( ULTA) being today's diversified services industry laggard.

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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