Alliance Data Systems Corporation (ADS): 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.

Alliance Data Systems Corporation ( ADS) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Alliance Data Systems Corporation fell $3.17 (-1.2%) to $251.00 on average volume. Throughout the day, 685,294 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 471,800 shares. The stock ranged in price between $250.09-$255.38 after having opened the day at $252.34 as compared to the previous trading day's close of $254.17. Other companies within the Diversified Services industry that declined today were: China HGS Real Estate ( HGSH), down 13.2%, EnviroStar ( EVI), down 7.0%, RLJ Entertainment ( RLJE), down 6.5% and WidePoint Corporation ( WYY), down 6.2%.

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 $12.1 billion and is part of the services sector. The company has a P/E ratio of 36.1, above the S&P 500 P/E ratio of 17.7. Shares are up 75.6% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Alliance Data Systems Corporation a buy, no analysts rate it a sell, and 4 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 positive front, Corporate Resource Services ( CRRS), up 11.7%, Pointer Telocation ( PNTR), up 10.4%, Luna Innovations ( LUNA), up 9.8% and Daegis ( DAEG), up 6.2% , were all gainers within the diversified services industry with SBA Communications ( SBAC) 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.

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