WXS, WEX And ATHN, Pushing 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 161 points (1.1%) at 14,992 as of Friday, May 3, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,292 issues advancing vs. 653 declining with 100 unchanged.

The Diversified Services industry currently sits up 1.8% versus the S&P 500, which is up 1.2%. Top gainers within the industry include Robert Half International ( RHI), up 4.8%, Fleetcor Technologies ( FLT), up 4.4% and Visa ( V), up 2.2%.

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

3. WEX ( WXS) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, WEX is down $5.77 (-7.6%) to $70.22 on average volume Thus far, 127,823 shares of WEX exchanged hands as compared to its average daily volume of 244,600 shares. The stock has ranged in price between $69.41-$70.48 after having opened the day at $69.94 as compared to the previous trading day's close of $75.99.

WEX Inc. provides corporate card payment solutions in North and South America, the Asia Pacific, and Europe. It operates in two segments, Fleet Payment Solutions and Other Payment Solutions. WEX has a market cap of $2.9 billion and is part of the services sector. The company has a P/E ratio of 30.6, above the S&P 500 P/E ratio of 17.7. Shares are up 0.8% year to date as of the close of trading on Thursday.

TheStreet Ratings rates WEX 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full WEX 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.

2. As of noon trading, WEX ( WEX) is down $5.77 (-7.6%) to $70.22 on average volume Thus far, 127,823 shares of WEX exchanged hands as compared to its average daily volume of 256,300 shares. The stock has ranged in price between $69.41-$70.48 after having opened the day at $69.94 as compared to the previous trading day's close of $75.99.

WEX Inc. provides corporate card payment solutions in North and South America, the Asia Pacific, and Europe. It operates in two segments, Fleet Payment Solutions and Other Payment Solutions. WEX has a market cap of $2.6 billion and is part of the services sector. The company has a P/E ratio of 26.6, above the S&P 500 P/E ratio of 17.7. Shares are down 8.8% year to date as of the close of trading on Thursday.

TheStreet Ratings rates WEX 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full WEX 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, AthenaHealth ( ATHN) is down $4.58 (-4.8%) to $90.57 on heavy volume Thus far, 877,705 shares of AthenaHealth exchanged hands as compared to its average daily volume of 334,200 shares. The stock has ranged in price between $89.90-$95.90 after having opened the day at $94.80 as compared to the previous trading day's close of $95.15.

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 $3.5 billion and is part of the services sector. The company has a P/E ratio of 192.0, above the S&P 500 P/E ratio of 17.7. Shares are up 31.0% year to date as of the close of trading on Thursday.

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, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full AthenaHealth 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.

null

More from Markets

Podcast: What TheStreet's Interns Learned From Jim Cramer and Action Alerts PLUS

Podcast: What TheStreet's Interns Learned From Jim Cramer and Action Alerts PLUS

Bank of America, Tariffs and the Goldman Sachs CEO Change: Jim Cramer Rewind

Bank of America, Tariffs and the Goldman Sachs CEO Change: Jim Cramer Rewind

Here's Why Alphabet, Facebook and Amazon Earnings May Overshadow Tariff Worries

Here's Why Alphabet, Facebook and Amazon Earnings May Overshadow Tariff Worries

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low