4 Diversified Services Stocks Dragging The Industry Down

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 79 points (0.5%) at 15,467 as of Wednesday, May 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,746 issues advancing vs. 1,183 declining with 133 unchanged.

The Diversified Services industry currently sits up 0.2% versus the S&P 500, which is up 0.5%. A company within the industry that fell today was Priceline.com ( PCLN), up 1.81. Top gainers within the industry include Booz Allen Hamilton ( BAH), up 7.2%, KBR ( KBR), up 2.4%, Visa ( V), up 0.8% and Hertz Global Holdings ( HTZ), up 0.9%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Computer Sciences Corporation ( CSC) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Computer Sciences Corporation is down $0.52 (-1.2%) to $43.78 on heavy volume Thus far, 1.2 million shares of Computer Sciences Corporation exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $43.35-$44.43 after having opened the day at $44.25 as compared to the previous trading day's close of $44.30.

Computer Sciences Corporation provides information technology (IT) and professional services to governments and commercial enterprises. Computer Sciences Corporation has a market cap of $6.7 billion and is part of the technology sector. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 10.6% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Computer Sciences Corporation as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins. Get the full Computer Sciences Corporation 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.

3. As of noon trading, Moody's Corporation ( MCO) is down $0.59 (-0.9%) to $68.03 on average volume Thus far, 1.1 million shares of Moody's Corporation exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $67.83-$69.70 after having opened the day at $68.61 as compared to the previous trading day's close of $68.62.

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 $15.1 billion and is part of the services sector. The company has a P/E ratio of 21.8, above the S&P 500 P/E ratio of 17.7. Shares are up 36.4% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Moody's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, 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 generally high debt management risk by most measures that we evaluated. Get the full Moody's Corporation 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, McGraw Hill Financial ( MHP) is down $0.32 (-0.6%) to $55.25 on light volume Thus far, 310,218 shares of McGraw Hill Financial exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $55.22-$55.94 after having opened the day at $55.40 as compared to the previous trading day's close of $55.57.

The McGraw-Hill Companies, Inc. provides information services for the financial, commodities and commercial, and education markets worldwide. McGraw Hill Financial has a market cap of $15.1 billion and is part of the services sector. The company has a P/E ratio of 23.5, above the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates McGraw Hill Financial as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full McGraw Hill Financial 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, SBA Communications ( SBAC) is down $1.18 (-1.5%) to $79.50 on light volume Thus far, 515,235 shares of SBA Communications exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $79.44-$80.66 after having opened the day at $80.58 as compared to the previous trading day's close of $80.69.

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 $10.3 billion and is part of the services sector. Shares are up 13.7% year to date as of the close of trading on Tuesday.

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 increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full SBA Communications 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

If you liked this article you might like

European Markets Set for Mixed Opening, Wall Street Futures Under Pressure

European Markets Set for Mixed Opening, Wall Street Futures Under Pressure

HP Enterprise's Earnings Were Encouraging, but It Still Has Much to Prove

HP Enterprise's Earnings Were Encouraging, but It Still Has Much to Prove

Now Meg Whitman Must Deal With This Wolf Pack at Hewlett Packard Enterprise

Now Meg Whitman Must Deal With This Wolf Pack at Hewlett Packard Enterprise

Top Earnings Takeaways for HP Enterprise, Palo Alto Networks, Box and Ciena

Top Earnings Takeaways for HP Enterprise, Palo Alto Networks, Box and Ciena

Top Earnings Takeaways for HP Enterprise, Palo Alto Networks, Box and Ciena

Top Earnings Takeaways for HP Enterprise, Palo Alto Networks, Box and Ciena