4 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 down 57 points (-0.4%) at 13,942 as of Monday, Feb. 25, 2013, 12:05 PM ET. The NYSE advances/declines ratio sits at 1,301 issues advancing vs. 1,576 declining with 144 unchanged.

The Diversified Services industry currently sits up 0.2% versus the S&P 500, which is down 0.3%. On the negative front, top decliners within the industry include Moody's Corporation ( MCO), down 0.6%, and MasterCard Incorporated ( MA), down 0.7%. 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%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. ITT Educational Services ( ESI) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, ITT Educational Services is down $2.58 (-13.8%) to $16.05 on heavy volume Thus far, 723,842 shares of ITT Educational Services exchanged hands as compared to its average daily volume of 891,900 shares. The stock has ranged in price between $16.05-$18.59 after having opened the day at $18.49 as compared to the previous trading day's close of $18.63.

ITT Educational Services, Inc. provides postsecondary degree programs in the United States. ITT Educational Services has a market cap of $431.7 million and is part of the services sector. The company has a P/E ratio of 3.2, below the S&P 500 P/E ratio of 17.7. Shares are up 6.9% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate ITT Educational Services a buy, 4 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates ITT Educational Services as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself. Get the full ITT Educational Services Ratings Report now.

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3. As of noon trading, HMS Holdings Corporation ( HMSY) is down $0.49 (-1.7%) to $27.83 on average volume Thus far, 544,400 shares of HMS Holdings Corporation exchanged hands as compared to its average daily volume of 930,200 shares. The stock has ranged in price between $26.84-$28.25 after having opened the day at $28.15 as compared to the previous trading day's close of $28.32.

HMS Holdings Corp. provides cost containment services to government and private healthcare payers and sponsors. The company's services include coordination of benefits and program integrity services. HMS Holdings Corporation has a market cap of $2.3 billion and is part of the services sector. The company has a P/E ratio of 54.1, above the S&P 500 P/E ratio of 17.7. Shares are up 0.1% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate HMS Holdings Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates HMS Holdings Corporation 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Get the full HMS Holdings Corporation Ratings Report now.

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2. As of noon trading, Weight Watchers International ( WTW) is down $1.04 (-2.4%) to $43.01 on light volume Thus far, 149,036 shares of Weight Watchers International exchanged hands as compared to its average daily volume of 870,100 shares. The stock has ranged in price between $42.95-$44.24 after having opened the day at $44.24 as compared to the previous trading day's close of $44.05.

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 $2.4 billion and is part of the services sector. The company has a P/E ratio of 10.3, below the S&P 500 P/E ratio of 17.7. Shares are down 15.9% year to date as of the close of trading on Friday. 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 growth in earnings per share. 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, Apollo Group ( APOL) is down $0.39 (-2.1%) to $18.19 on light volume Thus far, 848,715 shares of Apollo Group exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $18.16-$18.75 after having opened the day at $18.71 as compared to the previous trading day's close of $18.58.

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 5.7, below the S&P 500 P/E ratio of 17.7. Shares are down 11.3% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Apollo Group a buy, 1 analyst rates it a sell, and 11 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 largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and weak operating cash flow. Get the full Apollo Group 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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