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 up 0.7%. By the end of trading, Alliance Data Systems Corporation fell $3.10 (-1.2%) to $255.19 on heavy volume. Throughout the day, 1,262,952 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 594,800 shares. The stock ranged in price between $251.67-$255.27 after having opened the day at $255.00 as compared to the previous trading day's close of $258.29. Other companies within the Diversified Services industry that declined today were: China Distance Education Holdings ( DL), down 9.6%, InterCloud Systems ( ICLD), down 8.8%, PDI ( PDII), down 5.2% and Corporate Resource Services ( CRRS), down 4.5%.

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 $12.8 billion and is part of the services sector. The company has a P/E ratio of 38.3, above the S&P 500 P/E ratio of 17.7. Shares are down 1.8% 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.

On the positive front, Document Security Systems ( DSS), up 17.1%, Limelight Networks ( LLNW), up 12.0%, YY ( YY), up 8.4% and USA Technologies ( USAT), up 8.2% , were all gainers within the diversified services industry with MasterCard Incorporated ( MA) 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.

If you liked this article you might like

Go Inside This Nike Experimental Fashion Installation

Adidas Is on Fire, and That Should Terrify Nike

How Much Cash Do You Have on You?: Cramer's 'Mad Money' Recap (Monday 8/14/17)

Alliance Data: Time to Get Back on Board

7 Potential New Targets for Activist Investor That Made a Killing on Whole Foods