AthenaHealth Inc. (ATHN): Today's Featured Diversified Services Laggard

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.

AthenaHealth ( ATHN) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 0.3%. By the end of trading, AthenaHealth fell $3.39 (-2.9%) to $112.27 on average volume. Throughout the day, 521,573 shares of AthenaHealth exchanged hands as compared to its average daily volume of 499,200 shares. The stock ranged in price between $110.86-$113.82 after having opened the day at $112.14 as compared to the previous trading day's close of $115.66. Other companies within the Diversified Services industry that declined today were: China Yida ( CNYD), down 17.6%, Spar Group ( SGRP), down 10.5%, WidePoint Corporation ( WYY), down 10.3% and Industrial Services of America ( IDSA), down 6.0%.

athenahealth, Inc., a business services company, provides ongoing billing, clinical-related, and other related services to medical group practices primarily in the United States. The company provides services through the athenaNet, a proprietary Internet-based practice management application. AthenaHealth has a market cap of $4.2 billion and is part of the services sector. Shares are up 57.0% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate AthenaHealth a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates AthenaHealth as a hold. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation.

On the positive front, VirtualScopics ( VSCP), up 42.5%, Digital Generation ( DGIT), up 22.2%, Taomee Holdings ( TAOM), up 16.9% and DLH Holdings ( DLHC), up 10.8% , were all gainers within the diversified services industry with Hertz Global Holdings ( HTZ) being today's featured diversified services industry leader.

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).

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

If you liked this article you might like

Jim Cramer: These 4 Stocks Seem Attractive Right Here

Jim Cramer: These 4 Stocks Seem Attractive Right Here

Why Former General Electric CEO Jeff Immelt Is a Great Fit for Athenahealth

Why Former General Electric CEO Jeff Immelt Is a Great Fit for Athenahealth

Yes, the Stock Market Can Still Go Up in Smoke This Week

Yes, the Stock Market Can Still Go Up in Smoke This Week

Tesla CEO Elon Musk Doesn't Get One Thing About Being a CEO

Tesla CEO Elon Musk Doesn't Get One Thing About Being a CEO

Stocks Are Shaky, Tesla Posts Its Largest Loss Ever - 5 Things You Must Know

Stocks Are Shaky, Tesla Posts Its Largest Loss Ever - 5 Things You Must Know