3 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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 30 points (-0.2%) at 14,005 as of Wednesday, Feb. 20, 2013, 12:04 PM ET. The NYSE advances/declines ratio sits at 991 issues advancing vs. 1,875 declining with 138 unchanged.

The Diversified Services industry currently sits down 0.2% versus the S&P 500, which is down 0.5%. On the negative front, top decliners within the industry include Total System Services ( TSS), down 5.3%, New Oriental Education & Technology Group I ( EDU), down 3.0%, SAIC ( SAI), down 2.6% and Moody's Corporation ( MCO), down 1.8%.

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

3. NetSpend Holdings ( NTSP) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, NetSpend Holdings is up $3.51 (28.6%) to $15.80 on heavy volume Thus far, 30.3 million shares of NetSpend Holdings exchanged hands as compared to its average daily volume of 544,400 shares. The stock has ranged in price between $15.78-$15.96 after having opened the day at $15.93 as compared to the previous trading day's close of $12.29.

Netspend Holdings, Inc., together with its subsidiaries, provides general purpose reloadable (GPR) prepaid debit and payroll cards, and alternative financial service solutions to underbanked and other consumers in the United States. NetSpend Holdings has a market cap of $885.1 million and is part of the services sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are up 7.4% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate NetSpend Holdings a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates NetSpend Holdings as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including premium valuation, weak operating cash flow and disappointing return on equity. Get the full NetSpend Holdings Ratings Report now.

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2. As of noon trading, Air Lease ( AL) is up $0.84 (3.2%) to $27.19 on average volume Thus far, 292,210 shares of Air Lease exchanged hands as compared to its average daily volume of 407,300 shares. The stock has ranged in price between $26.47-$27.35 after having opened the day at $26.47 as compared to the previous trading day's close of $26.35.

Air Lease Corporation engages in the purchase and leasing of commercial aircraft to airlines worldwide. The company also provides fleet management and remarketing services, including leasing, re-leasing, lease management, and sales services to investors and/or owners of aircraft portfolios. Air Lease has a market cap of $2.6 billion and is part of the services sector. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Air Lease a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Air Lease as a sell. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures. Get the full Air Lease Ratings Report now.

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1. As of noon trading, Fidelity National Information Services ( FIS) is up $0.26 (0.7%) to $37.25 on light volume Thus far, 806,279 shares of Fidelity National Information Services exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $36.92-$37.32 after having opened the day at $36.97 as compared to the previous trading day's close of $36.99.

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 $10.7 billion and is part of the services sector. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are up 4.8% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Fidelity National Information Services a buy, no analysts rate it a sell, and 8 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, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Fidelity National Information Services Ratings Report now.

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If you are interested in one of these 3 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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