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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 1.5%. By the end of trading, Paychex rose $1.00 (2.5%) to $40.44 on average volume. Throughout the day, 3,061,950 shares of Paychex exchanged hands as compared to its average daily volume of 2,317,800 shares. The stock ranged in a price between $39.41-$40.48 after having opened the day at $39.61 as compared to the previous trading day's close of $39.44. Other companies within the Diversified Services industry that increased today were: Zillow ( Z), up 14.8%, China Distance Education Holdings ( DL), up 13.6%, WidePoint Corporation ( WYY), up 13.0% and Cardtronics ( CATM), up 12.1%.

Paychex, Inc., together with its subsidiaries, provides payroll, human resource, insurance, and benefits outsourcing solutions for small to medium-sized businesses in the United States and Germany. Paychex has a market cap of $14.2 billion and is part of the services sector. Shares are up 25.0% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Paychex a buy, 3 analysts rate it a sell, and 19 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, expanding profit margins, increase in net income, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Lime Energy ( LIME), down 20.4%, General Employment ( JOB), down 12.5%, GP Strategies Corporation ( GPX), down 11.2% and China Yida ( CNYD), down 8.7% , were all laggards within the diversified services industry with Hertz Global Holdings ( HTZ) 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).

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