5 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 up 15 points (0.1%) at 12,980 as of Tuesday, Dec. 4, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,319 issues advancing vs. 1,553 declining with 162 unchanged.

The Diversified Services industry currently sits down 0.2% versus the S&P 500, which is down 0.1%. Top gainers within the industry include Education Management Corporation ( EDMC), up 8.7%, and SAIC ( SAI), up 1.3%. On the negative front, top decliners within the industry include Net 1 Ueps Technologies ( UEPS), down 56.6%, Verisk Analytics ( VRSK), down 2.4%, Western Union Company ( WU), down 0.8% and MasterCard Incorporated ( MA), down 0.9%.

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

5. Textainer Group Holdings ( TGH) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, Textainer Group Holdings is up $0.92 (3.1%) to $30.69 on light volume Thus far, 82,160 shares of Textainer Group Holdings exchanged hands as compared to its average daily volume of 336,700 shares. The stock has ranged in price between $29.65-$30.69 after having opened the day at $29.67 as compared to the previous trading day's close of $29.77.

Textainer Group Holdings Limited, through its subsidiaries, engages in the purchase, ownership, management, leasing, and resale of a fleet of marine cargo containers worldwide. Textainer Group Holdings has a market cap of $1.7 billion and is part of the services sector. The company has a P/E ratio of 7.3, below the S&P 500 P/E ratio of 17.7. Shares are up 2.2% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Textainer Group Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Textainer Group Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, expanding profit margins and good cash flow from operations. 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 Textainer Group Holdings Ratings Report now.

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4. As of noon trading, Apollo Group ( APOL) is up $0.69 (3.6%) to $19.76 on average volume Thus far, 1.1 million shares of Apollo Group exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $19.07-$19.76 after having opened the day at $19.14 as compared to the previous trading day's close of $19.06.

Apollo Group, Inc., through its subsidiaries, provides online and on-campus educational programs and services at the undergraduate, master's, and doctoral levels. Apollo Group has a market cap of $2.1 billion and is part of the services sector. The company has a P/E ratio of 6.0, below the S&P 500 P/E ratio of 17.7. Shares are down 64.4% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Apollo Group a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Apollo Group as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow. Get the full Apollo Group Ratings Report now.

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3. As of noon trading, Fidelity National Information Services ( FIS) is up $0.35 (1.0%) to $36.16 on average volume Thus far, 727,401 shares of Fidelity National Information Services exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $35.88-$36.26 after having opened the day at $35.88 as compared to the previous trading day's close of $35.81.

Fidelity National Information Services, Inc. provides banking and payments technology solutions worldwide. The company offers financial institution core processing, card issuer, and transaction processing services, including the NYCE Network. Fidelity National Information Services has a market cap of $10.6 billion and is part of the services sector. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are up 35.8% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate Fidelity National Information Services a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Fidelity National Information Services 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, solid stock price performance, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Fidelity National Information Services Ratings Report now.

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2. As of noon trading, Paychex ( PAYX) is up $0.16 (0.5%) to $32.64 on light volume Thus far, 641,068 shares of Paychex exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $32.39-$32.68 after having opened the day at $32.45 as compared to the previous trading day's close of $32.48.

Paychex, Inc., together with its subsidiaries, provides payroll, human resource, and benefits outsourcing solutions for small to medium-sized businesses in the United States and Germany. Paychex has a market cap of $11.8 billion and is part of the services sector. The company has a P/E ratio of 21.4, above the S&P 500 P/E ratio of 17.7. Shares are up 8.1% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Paychex a buy, 3 analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Paychex as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Paychex Ratings Report now.

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1. As of noon trading, SBA Communications ( SBAC) is up $0.25 (0.4%) to $68.67 on average volume Thus far, 535,007 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 $68.67-$69.63 after having opened the day at $69.12 as compared to the previous trading day's close of $68.42.

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 $8.7 billion and is part of the services sector. Shares are up 60.2% year to date as of the close of trading on Monday. 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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