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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 22 points (0.1%) at 16,443 as of Friday, March 7, 2014, 12:10 PM ET. The NYSE advances/declines ratio sits at 1,182 issues advancing vs. 1,749 declining with 162 unchanged.

The Diversified Services industry currently sits up 0.2% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include Furmanite Corporation ( FRM), down 13.6%, Mercadolibre ( MELI), down 2.7%, AthenaHealth ( ATHN), down 2.4%, Shutterstock ( SSTK), down 2.4% and Fleetcor Technologies ( FLT), down 0.7%. Top gainers within the industry include Korn/Ferry International ( KFY), up 11.4%, Service Corporation International ( SCI), up 1.6% and Western Union Company ( WU), up 1.3%.

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 $0.47 (-2.5%) to $18.43 on average volume. Thus far, 890,859 shares of R.R. Donnelley & Sons Company exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $18.38-$19.16 after having opened the day at $18.99 as compared to the previous trading day's close of $18.90.

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 $3.8 billion and is part of the services sector. Shares are down 5.7% year-to-date as of the close of trading on Thursday. 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.

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2. As of noon trading, Shutterfly ( SFLY) is down $1.27 (-2.4%) to $52.04 on average volume. Thus far, 512,643 shares of Shutterfly exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $51.53-$53.80 after having opened the day at $53.78 as compared to the previous trading day's close of $53.31.

Shutterfly, Inc. is engaged in the manufacture and retail of digital personalized products and services in the United States. Shutterfly has a market cap of $2.1 billion and is part of the services sector. Shares are up 5.8% year-to-date as of the close of trading on Thursday. Currently there are 8 analysts that rate Shutterfly a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Shutterfly as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Shutterfly 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, H&R Block ( HRB) is down $0.02 (0.1%) to $30.98 on heavy volume. Thus far, 4.6 million shares of H&R Block exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $30.03-$31.00 after having opened the day at $30.33 as compared to the previous trading day's close of $30.96.

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 $8.5 billion and is part of the services sector. Shares are up 7.2% year-to-date as of the close of trading on Thursday. 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, good cash flow from operations, increase in net income 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.

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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