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

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%. 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 3 stocks pushing the industry lower today:

3. New Oriental Education & Technology Group I ( EDU) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, New Oriental Education & Technology Group I is down $0.95 (-4.7%) to $19.30 on heavy volume Thus far, 4.0 million shares of New Oriental Education & Technology Group I exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $18.88-$20.25 after having opened the day at $20.07 as compared to the previous trading day's close of $20.25.

New Oriental Education & Technology Group Inc. provides private educational services primarily in China. New Oriental Education & Technology Group I has a market cap of $3.2 billion and is part of the services sector. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are down 16.2% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate New Oriental Education & Technology Group I a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates New Oriental Education & Technology Group I 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 a generally disappointing performance in the stock itself, premium valuation and disappointing return on equity. Get the full New Oriental Education & Technology Group I Ratings Report now.

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2. As of noon trading, Moody's Corporation ( MCO) is down $0.27 (-0.6%) to $48.71 on light volume Thus far, 679,434 shares of Moody's Corporation exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $48.40-$49.18 after having opened the day at $48.81 as compared to the previous trading day's close of $48.98.

Moody's Corporation, through its subsidiaries, provides credit ratings, research, and analysis covering fixed-income securities, other debt instruments, and the entities that issue such instruments in the global capital markets. Moody's Corporation has a market cap of $10.8 billion and is part of the services sector. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 44.2% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Moody's Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Moody's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Moody's Corporation Ratings Report now.

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1. As of noon trading, United Rentals ( URI) is down $0.63 (-1.5%) to $41.04 on light volume Thus far, 487,989 shares of United Rentals exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $40.86-$41.82 after having opened the day at $41.54 as compared to the previous trading day's close of $41.67.

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It offers approximately 3,000 classes of equipment for rent to customers comprising construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. United Rentals has a market cap of $3.8 billion and is part of the services sector. The company has a P/E ratio of 55.4, above the S&P 500 P/E ratio of 17.7. Shares are up 41.0% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate United Rentals a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates United Rentals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow. Get the full United Rentals 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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