3 Stocks Dragging The Diversified Services Industry Downward

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 36 points (0.3%) at 14,562 as of Thursday, March 28, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,626 issues advancing vs. 1,256 declining with 162 unchanged.

The Diversified Services industry currently is unchanged today versus the S&P 500, which is up 0.2%. A company within the industry that fell today was Priceline.com ( PCLN), up 1.1%. Top gainers within the industry include Qiagen ( QGEN), up 2.3%, KBR ( KBR), up 1.5%, Alliance Data Systems Corporation ( ADS), up 0.8%, Fidelity National Information Services ( FIS), up 0.7% and Visa ( V), up 0.6%.

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

3. Synnex Corporation ( SNX) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Synnex Corporation is down $3.90 (-9.5%) to $36.98 on heavy volume Thus far, 251,947 shares of Synnex Corporation exchanged hands as compared to its average daily volume of 171,600 shares. The stock has ranged in price between $36.71-$38.40 after having opened the day at $38.07 as compared to the previous trading day's close of $40.88.

SYNNEX Corporation provides distribution and business process outsourcing (BPO) services to resellers, retailers, and original equipment manufacturers (OEMs) primarily in North America. The company operates in two segments, Distribution Services and Global Business Services (GBS). Synnex Corporation has a market cap of $1.5 billion and is part of the services sector. The company has a P/E ratio of 10.2, below the S&P 500 P/E ratio of 17.7. Shares are up 18.9% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Synnex Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Synnex Corporation as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Synnex Corporation Ratings Report now.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE

2. As of noon trading, Verisk Analytics ( VRSK) is down $0.51 (-0.8%) to $61.04 on average volume Thus far, 278,844 shares of Verisk Analytics exchanged hands as compared to its average daily volume of 728,500 shares. The stock has ranged in price between $60.99-$61.85 after having opened the day at $61.77 as compared to the previous trading day's close of $61.55.

Verisk Analytics, Inc. provides proprietary data, analytics methods, and embedded decision support solutions for detecting fraud in property and casualty (P&C) insurance, financial, and healthcare industries primarily in the United States. Verisk Analytics has a market cap of $10.3 billion and is part of the services sector. The company has a P/E ratio of 32.0, above the S&P 500 P/E ratio of 17.7. Shares are up 20.8% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Verisk Analytics a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Verisk Analytics as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. 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 Verisk Analytics Ratings Report now.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE

1. As of noon trading, SBA Communications ( SBAC) is down $0.77 (-1.1%) to $71.52 on light volume Thus far, 437,777 shares of SBA Communications exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $71.36-$72.54 after having opened the day at $72.25 as compared to the previous trading day's close of $72.29.

SBA Communications Corporation owns and operates wireless communications towers in the United States, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua, Panama, and Brazil. SBA Communications has a market cap of $9.1 billion and is part of the services sector. Shares are up 1.8% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate SBA Communications a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates SBA Communications as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and feeble growth in the company's earnings per share. Get the full SBA Communications Ratings Report now.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE

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.
null