5 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

Two out of the three major indices are trading up 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%. 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%. A company within the industry that increased today was Visa ( V), up 0.5%.

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

5. Mercadolibre ( MELI) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Mercadolibre is down $1.74 (-1.8%) to $94.45 on average volume Thus far, 228,801 shares of Mercadolibre exchanged hands as compared to its average daily volume of 547,500 shares. The stock has ranged in price between $94.12-$96.01 after having opened the day at $96.01 as compared to the previous trading day's close of $96.19.

MercadoLibre, Inc. hosts online commerce platforms in Latin America. Its services are designed to provide users with mechanisms for buying, selling, paying, collecting, generating leads, and comparing listings through e-commerce transactions. Mercadolibre has a market cap of $4.3 billion and is part of the services sector. The company has a P/E ratio of 42.5, above the S&P 500 P/E ratio of 17.7. Shares are up 22.5% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Mercadolibre as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Mercadolibre Ratings Report now.

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4. As of noon trading, Fleetcor Technologies ( FLT) is down $0.83 (-1.1%) to $76.44 on average volume Thus far, 521,850 shares of Fleetcor Technologies exchanged hands as compared to its average daily volume of 726,700 shares. The stock has ranged in price between $75.95-$77.72 after having opened the day at $77.48 as compared to the previous trading day's close of $77.27.

FleetCor Technologies, Inc. provides fuel cards and workforce payment products and services to businesses, commercial fleets, oil companies, petroleum marketers, and government entities in North America, Latin America, and Europe. Fleetcor Technologies has a market cap of $6.3 billion and is part of the services sector. The company has a P/E ratio of 30.9, above the S&P 500 P/E ratio of 17.7. Shares are up 44.0% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Fleetcor Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Fleetcor Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Fleetcor Technologies Ratings Report now.

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3. As of noon trading, Fidelity National Information Services ( FIS) is down $0.23 (-0.6%) to $39.67 on average volume Thus far, 835,106 shares of Fidelity National Information Services exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $39.64-$40.00 after having opened the day at $39.89 as compared to the previous trading day's close of $39.90.

Fidelity National Information Services, Inc. provides banking and payments technology solutions worldwide. The company offers financial institution core processing, card issuer, and transaction processing services, including the national electronic funds transfer network. Fidelity National Information Services has a market cap of $11.8 billion and is part of the technology sector. The company has a P/E ratio of 22.0, above the S&P 500 P/E ratio of 17.7. Shares are up 14.6% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Fidelity National Information Services a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Fidelity National Information Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Fidelity National Information Services Ratings Report now.

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2. As of noon trading, H&R Block ( HRB) is down $0.20 (-0.7%) to $28.53 on light volume Thus far, 1.6 million shares of H&R Block exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $28.36-$28.90 after having opened the day at $28.74 as compared to the previous trading day's close of $28.73.

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 $8.0 billion and is part of the services sector. The company has a P/E ratio of 25.2, above the S&P 500 P/E ratio of 17.7. Shares are up 54.7% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate H&R Block a buy, no analysts rate it a sell, and 2 rate 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 notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and premium valuation. Get the full H&R Block Ratings Report now.

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1. As of noon trading, Hertz Global Holdings ( HTZ) is down $0.38 (-1.7%) to $22.14 on average volume Thus far, 3.9 million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $22.04-$22.58 after having opened the day at $22.50 as compared to the previous trading day's close of $22.52.

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 $9.4 billion and is part of the services sector. The company has a P/E ratio of 43.4, above the S&P 500 P/E ratio of 17.7. Shares are up 38.4% 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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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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