Paychex Inc. (PAYX): Today's Featured Diversified Services Winner

Paychex ( PAYX) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 0.6%. By the end of trading, Paychex rose $0.43 (1.1%) to $38.04 on average volume. Throughout the day, 2,473,549 shares of Paychex exchanged hands as compared to its average daily volume of 2,218,000 shares. The stock ranged in a price between $37.67-$38.06 after having opened the day at $37.99 as compared to the previous trading day's close of $37.61. Other companies within the Diversified Services industry that increased today were: Luna Innovations ( LUNA), up 40.8%, ENGlobal Corporation ( ENG), up 12.6%, Daegis ( DAEG), up 12.5% and SmartPros ( SPRO), up 10.8%.

Paychex, Inc., together with its subsidiaries, provides payroll, human resource, and benefits outsourcing solutions for small to medium-sized businesses in the United States and Germany. Paychex has a market cap of $13.5 billion and is part of the services sector. Shares are up 19.5% year to date as of the close of trading on Friday. Currently there is 1 analyst that rates Paychex a buy, 3 analysts rate it a sell, and 18 rate it a hold.

TheStreet Ratings rates Paychex as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Taomee Holdings ( TAOM), down 15.7%, WidePoint Corporation ( WYY), down 10.1%, Document Security Systems ( DSS), down 6.7% and Portfolio Recovery Associates ( PRAA), down 6.0% , were all laggards within the diversified services industry with Visa ( V) being today's diversified services industry laggard.

For investors not wanting singular stock exposure, 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).

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

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