3 Diversified Services Stocks Driving The 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 15 points (0.1%) at 14,565 as of Thursday, April 4, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,512 issues advancing vs. 1,354 declining with 153 unchanged.

The Diversified Services industry currently sits down 0.1% versus the S&P 500, which is up 0.1%. A company within the industry that increased today was Visa ( V), up 0.5%. On the negative front, top decliners within the industry include Ritchie Bros. Auctioneers ( RBA), down 2.3%, Qiagen ( QGEN), down 0.9% and Verisk Analytics ( VRSK), down 0.8%.

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

3. Ulta Salon Cosmetics & Fragrances ( ULTA) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, Ulta Salon Cosmetics & Fragrances is up $1.86 (2.3%) to $83.86 on heavy volume Thus far, 1.1 million shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $82.43-$84.68 after having opened the day at $84.30 as compared to the previous trading day's close of $82.00.

Ulta Salon, Cosmetics & Fragrance, Inc. operates as a beauty retailer that provides prestige, mass, and salon products; and salon services in the United States. Ulta Salon Cosmetics & Fragrances has a market cap of $5.3 billion and is part of the services sector. The company has a P/E ratio of 30.8, above the S&P 500 P/E ratio of 17.7. Shares are down 16.5% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Ulta Salon Cosmetics & Fragrances a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Ulta Salon Cosmetics & Fragrances 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, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Ulta Salon Cosmetics & Fragrances Ratings Report now.

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2. As of noon trading, SBA Communications ( SBAC) is up $0.72 (1.0%) to $72.81 on light volume Thus far, 537,805 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 $71.92-$73.02 after having opened the day at $72.16 as compared to the previous trading day's close of $72.09.

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 $9.2 billion and is part of the services sector. Shares are up 1.6% year to date as of the close of trading on Wednesday. Currently there are 10 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.

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1. As of noon trading, Moody's Corporation ( MCO) is up $0.56 (1.1%) to $52.79 on light volume Thus far, 465,004 shares of Moody's Corporation exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $52.01-$53.30 after having opened the day at $52.15 as compared to the previous trading day's close of $52.23.

Moody's Corporation provides credit ratings; and credit, capital markets, and economic related research, data, and analytical tools worldwide. Moody's Corporation has a market cap of $11.8 billion and is part of the services sector. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 3.8% year to date as of the close of trading on Wednesday. Currently there are 2 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 3 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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