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 12 points (0.1%) at 15,069 as of Wednesday, May 8, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,670 issues advancing vs. 1,254 declining with 121 unchanged.

The Diversified Services industry currently sits up 0.1% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Mercadolibre ( MELI), down 4.71, Moody's Corporation ( MCO), down 1.31 and H&R Block ( HRB), down 1.00.

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

3. Zillow ( Z) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Zillow is down $6.25 (-9.9%) to $56.69 on heavy volume Thus far, 1.8 million shares of Zillow exchanged hands as compared to its average daily volume of 750,800 shares. The stock has ranged in price between $56.30-$60.35 after having opened the day at $59.87 as compared to the previous trading day's close of $62.94.

Zillow, Inc. engages in the operation of a real estate and home-related information marketplace on mobile and the Web in the United States. Zillow has a market cap of $1.7 billion and is part of the services sector. The company has a P/E ratio of 338.9, above the S&P 500 P/E ratio of 17.7. Shares are up 126.8% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Zillow as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and premium valuation. Get the full Zillow 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, Western Union Company ( WU) is down $0.18 (-1.1%) to $15.56 on light volume Thus far, 3.1 million shares of Western Union Company exchanged hands as compared to its average daily volume of 9.4 million shares. The stock has ranged in price between $15.47-$15.71 after having opened the day at $15.66 as compared to the previous trading day's close of $15.74.

The Western Union Company provides money movement and payment services worldwide. The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions. The Consumer-to-Consumer segment offers cash money transfer services involving walk-in agent locations. Western Union Company has a market cap of $8.8 billion and is part of the financial sector. The company has a P/E ratio of 9.5, below the S&P 500 P/E ratio of 17.7. Shares are up 15.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Western Union Company as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full Western Union Company 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, Visa ( V) is down $1.80 (-1.0%) to $177.99 on average volume Thus far, 2.1 million shares of Visa exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $177.70-$179.50 after having opened the day at $179.46 as compared to the previous trading day's close of $179.79.

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $92.7 billion and is part of the financial sector. The company has a P/E ratio of 49.4, above the S&P 500 P/E ratio of 17.7. Shares are up 18.6% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Visa 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, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Visa 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 4 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

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers