3 Stocks Pushing 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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 15,338 as of Friday, May 31, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 963 issues advancing vs. 1,995 declining with 88 unchanged.

The Diversified Services industry currently sits down 0.09 versus the S&P 500, which is down 0.09. A company within the industry that fell today was Alliance Data Systems Corporation ( ADS), up 0.87. Top gainers within the industry include China HGS Real Estate ( HGSH), up 19.0%, Air Lease ( AL), up 2.3%, Rollins ( ROL), up 2.0% and KBR ( KBR), up 1.2%.

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

3. Corrections Corporation of America ( CXW) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Corrections Corporation of America is down $0.42 (-1.2%) to $35.56 on light volume Thus far, 416,530 shares of Corrections Corporation of America exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $35.47-$36.17 after having opened the day at $35.89 as compared to the previous trading day's close of $35.98.

Corrections Corporation of America, together with its subsidiaries, owns and operates privatized correctional and detention facilities in the United States. Corrections Corporation of America has a market cap of $3.6 billion and is part of the services sector. The company has a P/E ratio of 11.8, 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 Thursday. Currently there are 4 analysts that rate Corrections Corporation of America a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Corrections Corporation of America as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Corrections Corporation of America Ratings Report now.

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2. As of noon trading, Mercadolibre ( MELI) is down $1.91 (-1.6%) to $116.90 on light volume Thus far, 194,013 shares of Mercadolibre exchanged hands as compared to its average daily volume of 570,300 shares. The stock has ranged in price between $115.71-$118.25 after having opened the day at $117.77 as compared to the previous trading day's close of $118.81.

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 $5.2 billion and is part of the technology sector. The company has a P/E ratio of 52.5, above the S&P 500 P/E ratio of 17.7. Shares are up 50.3% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Mercadolibre 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 expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Mercadolibre Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Fidelity National Information Services ( FIS) is down $0.38 (-0.8%) to $45.40 on light volume Thus far, 528,682 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 $45.24-$45.67 after having opened the day at $45.58 as compared to the previous trading day's close of $45.78.

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 $13.2 billion and is part of the technology sector. The company has a P/E ratio of 22.4, above the S&P 500 P/E ratio of 17.7. Shares are up 31.5% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Fidelity National Information Services a buy, no analysts rate it a sell, and 7 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. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Fidelity National Information Services Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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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