HRB, ATHN And ADS, Pushing Diversified Services Industry Downward

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 49 points (0.3%) at 16,344 as of Tuesday, Dec. 24, 2013, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,931 issues advancing vs. 985 declining with 162 unchanged.

The Diversified Services industry currently sits up 0.6% versus the S&P 500, which is up 0.2%. Top gainers within the industry include TAL Education Group ( XRS), up 6.2%, Education Management Corporation ( EDMC), up 3.0%, Portfolio Recovery Associates ( PRAA), up 1.9%, Service Corporation International ( SCI), up 1.7% and URS Corporation ( URS), up 1.4%.

TheStreet would like to highlight 3 stocks pushing the industry lower today:

3. H&R Block ( HRB) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, H&R Block is down $0.15 (-0.5%) to $28.68 on light volume. Thus far, 226,240 shares of H&R Block exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $28.58-$28.98 after having opened the day at $28.90 as compared to the previous trading day's close of $28.83.

H&R Block, Inc., through its subsidiaries, provides tax preparation and related services to the general public in the United States, Canada, and Australia. H&R Block has a market cap of $7.8 billion and is part of the services sector. Shares are up 55.2% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate H&R Block a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates H&R Block as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full H&R Block Ratings Report now.

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

2. As of noon trading, AthenaHealth ( ATHN) is down $2.07 (-1.5%) to $132.44 on light volume. Thus far, 59,609 shares of AthenaHealth exchanged hands as compared to its average daily volume of 569,400 shares. The stock has ranged in price between $132.33-$134.89 after having opened the day at $134.60 as compared to the previous trading day's close of $134.51.

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 $4.9 billion and is part of the services sector. Shares are up 80.8% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate AthenaHealth a buy, 3 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, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share. Get the full AthenaHealth Ratings Report now.

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

1. As of noon trading, Alliance Data Systems Corporation ( ADS) is down $2.00 (-0.8%) to $253.87 on light volume. Thus far, 169,877 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 551,900 shares. The stock has ranged in price between $252.26-$256.07 after having opened the day at $255.46 as compared to the previous trading day's close of $255.87.

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 $12.2 billion and is part of the services sector. Shares are up 76.8% year to date as of the close of trading on Monday. 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. Get the full Alliance Data Systems Corporation Ratings Report now.

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

If you are interested in one of these 5 stocks, 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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