4 Stocks Pushing The Diversified Services Industry Higher

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 down 19 points (-0.1%) at 13,006 as of Monday, Dec. 3, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,239 issues advancing vs. 1,655 declining with 129 unchanged.

The Diversified Services industry currently is unchanged today versus the S&P 500, which is down 0.1%. A company within the industry that increased today was Hertz Global Holdings ( HTZ), up 0.9%. On the negative front, top decliners within the industry include Global Payments ( GPN), down 1.3%, Genpact ( G), down 1.5% and Tyco International ( TYC), down 1.2%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry higher today:

4. Geo Group ( GEO) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, Geo Group is up $0.95 (3.4%) to $29.15 on heavy volume Thus far, 517,069 shares of Geo Group exchanged hands as compared to its average daily volume of 380,800 shares. The stock has ranged in price between $28.68-$29.54 after having opened the day at $29.01 as compared to the previous trading day's close of $28.20.

The GEO Group, Inc. provides government-outsourced services specializing in the management of correctional, detention, mental health, residential treatment, and re-entry facilities in the United States, Australia, South Africa, the United Kingdom, and Canada. Geo Group has a market cap of $1.7 billion and is part of the services sector. The company has a P/E ratio of 22.9, above the S&P 500 P/E ratio of 17.7. Shares are up 68.4% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Geo Group a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Geo Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Geo Group Ratings Report now.

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3. As of noon trading, Corrections Corporation of America ( CXW) is up $0.46 (1.3%) to $34.36 on average volume Thus far, 498,714 shares of Corrections Corporation of America exchanged hands as compared to its average daily volume of 807,000 shares. The stock has ranged in price between $34.00-$34.66 after having opened the day at $34.20 as compared to the previous trading day's close of $33.90.

Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities in the United States. Corrections Corporation of America has a market cap of $3.4 billion and is part of the services sector. The company has a P/E ratio of 22.5, above the S&P 500 P/E ratio of 17.7. Shares are up 66.4% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Corrections Corporation of America a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Corrections Corporation of America as a buy. 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, good cash flow from operations, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Corrections Corporation of America Ratings Report now.

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2. As of noon trading, AthenaHealth ( ATHN) is up $1.75 (2.8%) to $65.44 on light volume Thus far, 193,176 shares of AthenaHealth exchanged hands as compared to its average daily volume of 532,800 shares. The stock has ranged in price between $64.16-$65.49 after having opened the day at $64.40 as compared to the previous trading day's close of $63.69.

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 $2.3 billion and is part of the services sector. The company has a P/E ratio of 127.0, above the S&P 500 P/E ratio of 17.7. Shares are up 29.3% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate AthenaHealth a buy, 2 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 growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and weak operating cash flow. Get the full AthenaHealth Ratings Report now.

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1. As of noon trading, Western Union Company ( WU) is up $0.08 (0.6%) to $12.69 on light volume Thus far, 2.5 million shares of Western Union Company exchanged hands as compared to its average daily volume of 9.0 million shares. The stock has ranged in price between $12.69-$12.83 after having opened the day at $12.72 as compared to the previous trading day's close of $12.61.

The Western Union Company provides money movement and payment services worldwide. The company operates in two segments, Consumer-to-Consumer and Global Business Payments. Western Union Company has a market cap of $7.6 billion and is part of the services sector. The company has a P/E ratio of 6.3, below the S&P 500 P/E ratio of 17.7. Shares are down 30.6% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate Western Union Company a buy, 3 analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Western Union Company as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself. Get the full Western Union Company Ratings Report now.

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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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