3 Stocks Dragging The 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.

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 29 points (-0.2%) at 16,367 as of Wednesday, March 5, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,229 issues advancing vs. 1,681 declining with 174 unchanged.

The Diversified Services industry currently sits down 0.2% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include Verisk Analytics ( VRSK), down 1.3%, Fidelity National Information Services ( FIS), down 1.2%, Fiserv ( FISV), down 1.1%, Paychex ( PAYX), down 1.0% and Visa ( V), down 1.0%.

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

3. AthenaHealth ( ATHN) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, AthenaHealth is down $9.56 (-4.7%) to $194.85 on light volume. Thus far, 214,904 shares of AthenaHealth exchanged hands as compared to its average daily volume of 685,800 shares. The stock has ranged in price between $194.35-$203.56 after having opened the day at $202.77 as compared to the previous trading day's close of $204.41.

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 $7.3 billion and is part of the technology sector. Shares are up 45.0% year-to-date as of the close of trading on Tuesday. Currently there are 8 analysts that rate AthenaHealth a buy, 2 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, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and premium valuation. 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.

2. As of noon trading, YY ( YY) is down $3.43 (-3.9%) to $83.75 on heavy volume. Thus far, 4.3 million shares of YY exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $82.10-$89.17 after having opened the day at $85.28 as compared to the previous trading day's close of $87.18.

YY Inc., through its subsidiaries, operates an online social platform in the People's Republic of China. It provides YY Client, a personal computer based user software that offers real-time access to user-created online social activities groups. YY has a market cap of $4.2 billion and is part of the technology sector. Shares are up 50.9% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts that rate YY a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates YY as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and robust revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full YY 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 $4.46 (-1.6%) to $282.67 on light volume. Thus far, 186,309 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 833,000 shares. The stock has ranged in price between $282.23-$286.36 after having opened the day at $285.10 as compared to the previous trading day's close of $287.13.

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 $14.8 billion and is part of the services sector. Shares are up 5.8% year-to-date as of the close of trading on Tuesday. 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, compelling growth in net income, solid stock price performance 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 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 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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