3 Diversified Services Stocks Dragging The Industry Down

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 38 points (0.2%) at 16,236 as of Thursday, Feb. 27, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,761 issues advancing vs. 1,149 declining with 174 unchanged.

The Diversified Services industry currently sits up 0.2% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Quad/Graphics ( QUAD), down 9.8%, New Oriental Education & Technology Group I ( EDU), down 5.0% and Altisource Portfolio Solutions ( ASPS), down 2.7%. Top gainers within the industry include ICF International ( ICFI), up 21.4%, Fleetcor Technologies ( FLT), up 3.4%, AECOM Technology Corporation ( ACM), up 2.6%, Vantiv ( VNTV), up 2.4% and SBA Communications ( SBAC), up 2.4%.

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

3. R.R. Donnelley & Sons Company ( RRD) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, R.R. Donnelley & Sons Company is down $0.60 (-3.1%) to $19.02 on average volume. Thus far, 1.1 million shares of R.R. Donnelley & Sons Company exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $18.96-$19.96 after having opened the day at $19.61 as compared to the previous trading day's close of $19.62.

R.R. Donnelley & Sons Company provides integrated communication solutions to private and public sectors worldwide. R.R. Donnelley & Sons Company has a market cap of $3.4 billion and is part of the services sector. Shares are down 3.2% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst that rates R.R. Donnelley & Sons Company a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates R.R. Donnelley & Sons Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full R.R. Donnelley & Sons Company 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, Computer Sciences Corporation ( CSC) is down $0.66 (-1.0%) to $62.95 on light volume. Thus far, 254,751 shares of Computer Sciences Corporation exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $62.76-$63.60 after having opened the day at $63.46 as compared to the previous trading day's close of $63.61.

Computer Sciences Corporation provides information technology (IT) and professional services and solutions in North America, Europe, Asia, and Australia. Computer Sciences Corporation has a market cap of $9.2 billion and is part of the technology sector. Shares are up 13.8% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Computer Sciences Corporation a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Computer Sciences Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Computer Sciences 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.

1. As of noon trading, Paychex ( PAYX) is down $0.24 (-0.6%) to $41.40 on average volume. Thus far, 1.4 million shares of Paychex exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $41.22-$41.73 after having opened the day at $41.68 as compared to the previous trading day's close of $41.64.

Paychex, Inc., together with its subsidiaries, provides payroll, human resource, insurance, and benefits outsourcing solutions for small to medium-sized businesses in the United States and Germany. Paychex has a market cap of $15.0 billion and is part of the services sector. Shares are down 8.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Paychex a buy, 4 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Paychex as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Paychex 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 3 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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