4 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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 51 points (0.4%) at 13,835 as of Tuesday, Feb. 26, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,532 issues advancing vs. 1,325 declining with 146 unchanged.

The Diversified Services industry currently is unchanged today versus the S&P 500, which is unchanged. Top gainers within the industry include Ritchie Bros. Auctioneers ( RBA), up 5.8%, AthenaHealth ( ATHN), up 1.8%, HMS Holdings Corporation ( HMSY), up 2.0% and Visa ( V), up 0.6%. On the negative front, top decliners within the industry include Heidrick & Struggles International ( HSII), down 20.4%, Apollo Group ( APOL), down 4.7%, Air Lease ( AL), down 2.6% and Alliance Data Systems Corporation ( ADS), down 0.6%.

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

4. Geo Group ( GEO) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, Geo Group is up $0.82 (2.5%) to $34.19 on heavy volume Thus far, 850,084 shares of Geo Group exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $33.42-$34.30 after having opened the day at $33.54 as compared to the previous trading day's close of $33.37.

The GEO Group, Inc. provides government-outsourced services specializing in the management of correctional, detention, mental health, residential treatment, and re-entry facilities in the United States, Australia, South Africa, the United Kingdom, and Canada. Geo Group has a market cap of $2.4 billion and is part of the services sector. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 19.0% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Geo Group a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Geo Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Geo Group Ratings Report now.

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3. As of noon trading, R.R. Donnelley & Sons Company ( RRD) is up $0.30 (3.1%) to $10.06 on average volume Thus far, 2.1 million shares of R.R. Donnelley & Sons Company exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $9.39-$10.22 after having opened the day at $10.15 as compared to the previous trading day's close of $9.76.

R.R. Donnelley & Sons Company provides integrated communication solutions to private and public sectors worldwide. R.R. Donnelley & Sons Company has a market cap of $1.8 billion and is part of the services sector. Shares are up 9.2% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate R.R. Donnelley & Sons Company a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates R.R. Donnelley & Sons Company as a hold. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full R.R. Donnelley & Sons Company Ratings Report now.

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2. As of noon trading, KBR ( KBR) is up $0.30 (1.0%) to $29.99 on average volume Thus far, 722,176 shares of KBR exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $29.55-$30.16 after having opened the day at $29.91 as compared to the previous trading day's close of $29.69.

KBR, Inc. operates as an engineering, construction, and services company worldwide. KBR has a market cap of $4.6 billion and is part of the services sector. The company has a P/E ratio of 31.9, above the S&P 500 P/E ratio of 17.7. Shares are up 3.6% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate KBR a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates KBR as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Get the full KBR Ratings Report now.

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1. As of noon trading, H&R Block ( HRB) is up $0.26 (1.1%) to $24.53 on light volume Thus far, 1.2 million shares of H&R Block exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $24.33-$24.70 after having opened the day at $24.43 as compared to the previous trading day's close of $24.27.

H&R Block, Inc., through its subsidiaries, engages in the provision of tax preparation and related services to the general public in the United States, Canada, and Australia. H&R Block has a market cap of $6.7 billion and is part of the services sector. The company has a P/E ratio of 20.6, above the S&P 500 P/E ratio of 17.7. Shares are up 32.8% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate H&R Block a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates H&R Block as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow. Get the full H&R Block 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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