AthenaHealth Inc. (ATHN): Today's Featured 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.

AthenaHealth ( ATHN) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.4%. By the end of trading, AthenaHealth fell $9.99 (-6.9%) to $135.59 on heavy volume. Throughout the day, 2,111,518 shares of AthenaHealth exchanged hands as compared to its average daily volume of 723,700 shares. The stock ranged in price between $132.65-$144.18 after having opened the day at $139.99 as compared to the previous trading day's close of $145.58. Other companies within the Services sector that declined today were: MoneyGram International ( MGI), down 13.6%, Newlead Holdings ( NEWL), down 9.8%, Green Dot ( GDOT), down 8.6% and YOU On Demand Holdings ( YOD), down 7.8%.

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 $5.4 billion and is part of the computer software & services industry. Shares are up 8.2% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate AthenaHealth a buy, 3 analysts rate it a sell, and 14 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.

On the positive front, China Yida ( CNYD), up 17.4%, Tarena International Inc ADR ( TEDU), up 15.1%, Empire Resorts ( NYNY), up 14.1% and Mastech Holdings ( MHH), up 13.0% , were all gainers within the services sector with TJX Companies ( TJX) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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