5 Stocks Driving The Diversified Services 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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 87 points (-0.6%) at 14,874 as of Thursday, June 6, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,317 issues advancing vs. 1,603 declining with 125 unchanged.

The Diversified Services industry currently is unchanged today versus the S&P 500, which is down 0.38. Top gainers within the industry include Booz Allen Hamilton ( BAH), up 2.4%, Qiagen ( QGEN), up 1.8%, Corrections Corporation of America ( CXW), up 1.4%, Service Corporation International ( SCI), up 1.3% and SAIC ( SAI), up 0.7%. On the negative front, top decliners within the industry include Giant Interactive Group ( GA), down 5.96, ABM Industries ( ABM), down 2.54 and Paychex ( PAYX), down 0.90.

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

5. Mercadolibre ( MELI) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, Mercadolibre is up $1.17 (1.03) to $115.08 on light volume Thus far, 122,805 shares of Mercadolibre exchanged hands as compared to its average daily volume of 564,000 shares. The stock has ranged in price between $113.35-$116.39 after having opened the day at $113.95 as compared to the previous trading day's close of $113.91.

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 $5.1 billion and is part of the technology sector. The company has a P/E ratio of 51.0, above the S&P 500 P/E ratio of 17.7. Shares are up 45.0% year to date as of the close of trading on Wednesday. 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.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Computer Sciences Corporation ( CSC) is up $0.29 (0.65) to $44.99 on average volume Thus far, 787,905 shares of Computer Sciences Corporation exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $44.55-$45.22 after having opened the day at $44.63 as compared to the previous trading day's close of $44.70.

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 11.9% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Computer Sciences Corporation a buy, 1 analyst rates it a sell, and 7 rate it a hold.

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.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Moody's Corporation ( MCO) is up $0.65 (1.02) to $64.27 on light volume Thus far, 535,945 shares of Moody's Corporation exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $63.37-$64.82 after having opened the day at $63.80 as compared to the previous trading day's close of $63.62.

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 $14.5 billion and is part of the services sector. The company has a P/E ratio of 20.9, above the S&P 500 P/E ratio of 17.7. Shares are up 26.4% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Moody's Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

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.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, SBA Communications ( SBAC) is up $0.61 (0.82) to $75.46 on light volume Thus far, 503,665 shares of SBA Communications exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $74.64-$75.51 after having opened the day at $74.92 as compared to the previous trading day's close of $74.85.

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 $9.6 billion and is part of the services sector. Shares are up 5.5% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate SBA Communications a buy, no analysts rate it a sell, and 1 rates it a hold.

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 good cash flow from operations. 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.

3x UPSIDE POTENTIAL: 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, Western Union Company ( WU) is up $0.09 (0.55) to $16.21 on light volume Thus far, 2.0 million shares of Western Union Company exchanged hands as compared to its average daily volume of 7.4 million shares. The stock has ranged in price between $16.06-$16.34 after having opened the day at $16.09 as compared to the previous trading day's close of $16.12.

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 $9.1 billion and is part of the financial sector. The company has a P/E ratio of 9.9, below the S&P 500 P/E ratio of 17.7. Shares are up 18.4% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Western Union Company a buy, 3 analysts rate it a sell, and 15 rate it a hold.

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.

3x UPSIDE POTENTIAL: 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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