5 Diversified Services Stocks Dragging The Industry Down

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 45 points (-0.3%) at 14,466 as of Thursday, March 21, 2013, 12:44 PM ET. The NYSE advances/declines ratio sits at 1,235 issues advancing vs. 1,661 declining with 139 unchanged.

The Diversified Services industry currently sits down 0.5% versus the S&P 500, which is down 0.4%. On the negative front, top decliners within the industry include Acacia Research Coroporation ( ACTG), down 4.5%, Textainer Group Holdings ( TGH), down 2.3%, Aaron's ( AAN), down 2.0%, Ryder System ( R), down 1.9% and Tetra Tech ( TTEK), down 1.8%.

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

5. Fiserv ( FISV) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Fiserv is down $0.59 (-0.7%) to $85.17 on light volume Thus far, 115,083 shares of Fiserv exchanged hands as compared to its average daily volume of 759,400 shares. The stock has ranged in price between $84.97-$85.46 after having opened the day at $85.00 as compared to the previous trading day's close of $85.76.

Fiserv, Inc., together with its subsidiaries, provides financial services technology solutions worldwide. Fiserv has a market cap of $11.4 billion and is part of the services sector. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are up 7.7% year to date as of the close of trading on Wednesday. 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 the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Fiserv Ratings Report now.

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4. As of noon trading, Tyco International ( TYC) is down $0.29 (-0.9%) to $31.17 on average volume Thus far, 1.2 million shares of Tyco International exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $31.00-$31.47 after having opened the day at $31.33 as compared to the previous trading day's close of $31.46.

Tyco International Ltd. operates as a fire protection and security company. The company provides security products and services, fire protection and detection products and services, valves and controls, and other industrial products. Tyco International has a market cap of $14.6 billion and is part of the services sector. Shares are up 6.8% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Tyco International a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Tyco International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself. Get the full Tyco International Ratings Report now.

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3. As of noon trading, Paychex ( PAYX) is down $0.17 (-0.5%) to $34.22 on light volume Thus far, 911,745 shares of Paychex exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $33.99-$34.29 after having opened the day at $34.29 as compared to the previous trading day's close of $34.39.

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 $12.3 billion 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 9.0% year to date as of the close of trading on Wednesday. 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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2. As of noon trading, Hertz Global Holdings ( HTZ) is down $0.30 (-1.4%) to $21.07 on light volume Thus far, 1.5 million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 6.6 million shares. The stock has ranged in price between $21.04-$21.43 after having opened the day at $21.19 as compared to the previous trading day's close of $21.37.

Hertz Global Holdings, Inc., through its subsidiaries, engages in the car and equipment rental businesses worldwide. The company operates in two segments, Car Rental and Equipment Rental. Hertz Global Holdings has a market cap of $9.0 billion and is part of the services sector. The company has a P/E ratio of 39.4, above the S&P 500 P/E ratio of 17.7. Shares are up 29.2% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Hertz Global Holdings a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Hertz Global Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Hertz Global Holdings Ratings Report now.

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1. As of noon trading, Moody's Corporation ( MCO) is down $0.24 (-0.5%) to $51.63 on light volume Thus far, 322,118 shares of Moody's Corporation exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $51.38-$51.92 after having opened the day at $51.38 as compared to the previous trading day's close of $51.87.

Moody's Corporation, through its subsidiaries, provides credit ratings, research, and analysis covering fixed-income securities, other debt instruments, and the entities that issue such instruments in the global capital markets. Moody's Corporation has a market cap of $11.5 billion and is part of the services sector. The company has a P/E ratio of 16.9, below the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Moody's Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Moody's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. 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 Moody's Corporation 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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