5 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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 14,544 as of Monday, April 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,423 issues advancing vs. 1,490 declining with 125 unchanged.

The Diversified Services industry currently sits down 0.35 versus the S&P 500, which is up 0.3%. Top gainers within the industry include Acacia Research Coroporation ( ACTG), up 4.5%, Fleetcor Technologies ( FLT), up 2.1%, Corrections Corporation of America ( CXW), up 2.0%, Alliance Data Systems Corporation ( ADS), up 1.5% and Genpact ( G), up 1.4%. On the negative front, top decliners within the industry include Amerco ( UHAL), down 2.80, Tyco International ( TYC), down 1.12, H&R Block ( HRB), down 0.58 and Hertz Global Holdings ( HTZ), down 0.21.

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

5. Rent-A-Center ( RCII) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, Rent-A-Center is up $0.69 (1.94) to $36.13 on average volume Thus far, 312,581 shares of Rent-A-Center exchanged hands as compared to its average daily volume of 703,600 shares. The stock has ranged in price between $35.08-$36.70 after having opened the day at $35.52 as compared to the previous trading day's close of $35.44.

Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. It operates in four segments: Core U.S., RAC Acceptance, International, and ColorTyme. Rent-A-Center has a market cap of $2.0 billion and is part of the services sector. The company has a P/E ratio of 11.3, below the S&P 500 P/E ratio of 17.7. Shares are up 1.4% year to date as of the close of trading on Friday.

TheStreet Ratings rates Rent-A-Center as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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 Rent-A-Center Ratings Report now.

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4. As of noon trading, AthenaHealth ( ATHN) is up $1.53 (1.65) to $94.42 on light volume Thus far, 122,542 shares of AthenaHealth exchanged hands as compared to its average daily volume of 341,000 shares. The stock has ranged in price between $90.89-$94.43 after having opened the day at $93.44 as compared to the previous trading day's close of $92.89.

athenahealth, Inc., a business services company, provides ongoing billing, clinical-related, and other related services to medical group practices primarily in the United States. The company provides services through the athenaNet, a proprietary Internet-based practice management application. AthenaHealth has a market cap of $3.4 billion and is part of the services sector. The company has a P/E ratio of 187.7, above the S&P 500 P/E ratio of 17.7. Shares are up 28.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates AthenaHealth 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, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full AthenaHealth Ratings Report now.

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3. As of noon trading, Mercadolibre ( MELI) is up $1.51 (1.64) to $93.41 on light volume Thus far, 173,457 shares of Mercadolibre exchanged hands as compared to its average daily volume of 523,400 shares. The stock has ranged in price between $90.64-$93.41 after having opened the day at $91.63 as compared to the previous trading day's close of $91.90.

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 $4.0 billion and is part of the services sector. The company has a P/E ratio of 39.3, above the S&P 500 P/E ratio of 17.7. Shares are up 15.2% year to date as of the close of trading on Friday.

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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2. As of noon trading, Jacobs Engineering Group ( JEC) is up $0.45 (0.90) to $50.49 on average volume Thus far, 400,959 shares of Jacobs Engineering Group exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $49.12-$50.51 after having opened the day at $50.11 as compared to the previous trading day's close of $50.04.

Jacobs Engineering Group Inc. provides technical, professional, and construction services to various industrial, commercial, and governmental clients worldwide. Jacobs Engineering Group has a market cap of $6.4 billion and is part of the services sector. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are up 17.5% year to date as of the close of trading on Friday.

TheStreet Ratings rates Jacobs Engineering Group 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, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Jacobs Engineering Group Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

1. As of noon trading, Ulta Salon Cosmetics & Fragrances ( ULTA) is up $1.11 (1.33) to $84.81 on light volume Thus far, 436,904 shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $83.31-$85.16 after having opened the day at $84.00 as compared to the previous trading day's close of $83.70.

Ulta Salon, Cosmetics & Fragrance, Inc. operates specialty retail stores in the United States. Its stores offer cosmetics, fragrance, haircare, and skincare products, as well as related accessories and services. 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 31.0, above the S&P 500 P/E ratio of 17.7. Shares are down 15.6% year to date as of the close of trading on Friday.

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.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks 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.

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