Alliance Data Systems Corporation (ADS): 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.

Alliance Data Systems Corporation ( ADS) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 0.8%. By the end of trading, Alliance Data Systems Corporation rose $7.28 (3.0%) to $248.70 on average volume. Throughout the day, 538,990 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 420,300 shares. The stock ranged in a price between $242.07-$249.58 after having opened the day at $242.90 as compared to the previous trading day's close of $241.42. Other companies within the Diversified Services industry that increased today were: EnviroStar ( EVI), up 21.8%, WidePoint Corporation ( WYY), up 18.1%, VirtualScopics ( VSCP), up 6.9% and Intersections ( INTX), up 6.0%.

Alliance Data Systems Corporation provides marketing and loyalty solutions primarily in North America. The company operates in three segments: LoyaltyOne, Epsilon, and Private Label Services and Credit. Alliance Data Systems Corporation has a market cap of $11.7 billion and is part of the services sector. The company has a P/E ratio of 35.0, above the S&P 500 P/E ratio of 17.7. Shares are up 66.8% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Alliance Data Systems Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Alliance Data Systems Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Ulta Salon Cosmetics & Fragrances ( ULTA), down 20.5%, China Distance Education Holdings ( DL), down 5.2%, Odyssey Marine Exploration ( OMEX), down 4.8% and YY ( YY), down 4.2% , were all laggards within the diversified services industry with Fleetcor Technologies ( FLT) 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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