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 down 39 points (-0.3%) at 13,960 as of Monday, Feb. 25, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,475 issues advancing vs. 1,392 declining with 148 unchanged.

The Diversified Services industry currently sits up 0.2% versus the S&P 500, which is down 0.1%. Top gainers within the industry include Hertz Global Holdings ( HTZ), up 6.8%, New Oriental Education & Technology Group I ( EDU), up 3.8%, Avis Budget Group ( CAR), up 2.9%, Qiagen ( QGEN), up 2.0% and SAIC ( SAI), up 1.9%. On the negative front, top decliners within the industry include Moody's Corporation ( MCO), down 0.6%, and MasterCard Incorporated ( MA), down 0.7%.

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

5. Corrections Corporation of America ( CXW) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, Corrections Corporation of America is up $0.54 (1.4%) to $37.99 on average volume Thus far, 589,407 shares of Corrections Corporation of America exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $37.50-$38.07 after having opened the day at $37.86 as compared to the previous trading day's close of $37.45.

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 $3.7 billion and is part of the services sector. The company has a P/E ratio of 23.5, above the S&P 500 P/E ratio of 17.7. Shares are up 4.2% year to date as of the close of trading on Friday. Currently there are 4 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 solid stock price performance, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. 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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4. As of noon trading, Mercadolibre ( MELI) is up $1.26 (1.5%) to $86.38 on average volume Thus far, 276,235 shares of Mercadolibre exchanged hands as compared to its average daily volume of 630,700 shares. The stock has ranged in price between $85.17-$87.07 after having opened the day at $85.17 as compared to the previous trading day's close of $85.12.

MercadoLibre, Inc. hosts online commerce platforms in Latin America. Its services are designed to provide its users with mechanisms for buying, selling, paying, collecting, generating leads, and comparing listings via e-commerce transactions. Mercadolibre has a market cap of $3.7 billion and is part of the services sector. The company has a P/E ratio of 40.1, above the S&P 500 P/E ratio of 17.7. Shares are up 7.2% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Mercadolibre as a buy. 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, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Mercadolibre Ratings Report now.

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3. As of noon trading, Fiserv ( FISV) is up $0.75 (0.9%) to $80.99 on light volume Thus far, 244,383 shares of Fiserv exchanged hands as compared to its average daily volume of 829,100 shares. The stock has ranged in price between $80.26-$81.18 after having opened the day at $80.26 as compared to the previous trading day's close of $80.24.

Fiserv, Inc., together with its subsidiaries, provides financial services technology solutions worldwide. Fiserv has a market cap of $10.6 billion and is part of the services sector. The company has a P/E ratio of 15.5, below the S&P 500 P/E ratio of 17.7. Shares are up 0.6% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Fiserv a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Fiserv as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, compelling growth in net income, reasonable valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Fiserv Ratings Report now.

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2. As of noon trading, Alliance Data Systems Corporation ( ADS) is up $2.79 (1.8%) to $156.81 on heavy volume Thus far, 431,953 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 502,000 shares. The stock has ranged in price between $153.97-$157.20 after having opened the day at $154.33 as compared to the previous trading day's close of $154.02.

Alliance Data Systems Corporation provides loyalty and marketing solutions primarily in North America. The company creates and deploys customized solutions. Alliance Data Systems Corporation has a market cap of $7.6 billion and is part of the services sector. The company has a P/E ratio of 23.1, above the S&P 500 P/E ratio of 17.7. Shares are up 5.0% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Alliance Data Systems Corporation a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Alliance Data Systems Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, good cash flow from operations and solid stock price performance. 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 Alliance Data Systems Corporation Ratings Report now.

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1. As of noon trading, Paychex ( PAYX) is up $0.36 (1.1%) to $33.48 on average volume Thus far, 1.4 million shares of Paychex exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $33.34-$33.62 after having opened the day at $33.39 as compared to the previous trading day's close of $33.12.

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 $12.0 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 6.1% year to date as of the close of trading on Friday. Currently there is 1 analyst that rates Paychex a buy, 4 analysts rate it a sell, and 18 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, growth in earnings per share, increase in net income, expanding profit margins and increase in stock price during the past year. 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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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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