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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 18 points (-0.1%) at 13,964 as of Thursday, Feb. 14, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,305 issues advancing vs. 1,524 declining with 153 unchanged.

The Diversified Services industry currently sits up 0.4% versus the S&P 500, which is down 0.1%. A company within the industry that fell today was Fidelity National Information Services ( FIS), up 1.3%. Top gainers within the industry include Hertz Global Holdings ( HTZ), up 5.0%, Tyco International ( TYC), up 0.8% and Visa ( V), up 0.7%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Strayer Education ( STRA) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Strayer Education is down $6.62 (-10.4%) to $57.35 on heavy volume Thus far, 650,915 shares of Strayer Education exchanged hands as compared to its average daily volume of 206,400 shares. The stock has ranged in price between $54.38-$60.00 after having opened the day at $59.00 as compared to the previous trading day's close of $63.97.

Strayer Education, Inc., through its subsidiary, Strayer University, provides post-secondary education services for working adults. Strayer Education has a market cap of $739.5 million and is part of the services sector. The company has a P/E ratio of 9.5, below the S&P 500 P/E ratio of 17.7. Shares are up 10.9% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Strayer Education a buy, 3 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Strayer Education as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. 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 generally higher debt management risk. Get the full Strayer Education Ratings Report now.

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2. As of noon trading, Weight Watchers International ( WTW) is down $8.37 (-15.5%) to $45.74 on heavy volume Thus far, 3.8 million shares of Weight Watchers International exchanged hands as compared to its average daily volume of 720,000 shares. The stock has ranged in price between $43.60-$45.94 after having opened the day at $44.83 as compared to the previous trading day's close of $54.11.

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 $3.0 billion and is part of the services sector. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are up 3.0% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Weight Watchers International a buy, no analysts rate it a sell, and 5 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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1. As of noon trading, Ulta Salon Cosmetics & Fragrances ( ULTA) is down $11.50 (-11.6%) to $87.99 on heavy volume Thus far, 3.8 million shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 721,500 shares. The stock has ranged in price between $86.90-$89.45 after having opened the day at $88.30 as compared to the previous trading day's close of $99.49.

Ulta Salon, Cosmetics & Fragrance, Inc. operates as a beauty retailer that provides prestige, mass, and salon products; and salon services in the United States. Ulta Salon Cosmetics & Fragrances has a market cap of $6.3 billion and is part of the services sector. The company has a P/E ratio of 41.0, above the S&P 500 P/E ratio of 17.7. Shares are up 0.5% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Ulta Salon Cosmetics & Fragrances a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Ulta Salon Cosmetics & Fragrances as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Ulta Salon Cosmetics & Fragrances 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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