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 105 points (0.6%) at 16,554 as of Tuesday, April 22, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,226 issues advancing vs. 749 declining with 155 unchanged.

The Diversified Services industry currently sits up 1.0% versus the S&P 500, which is up 0.6%. Top gainers within the industry include Rent-A-Center ( RCII), up 14.8%, Shutterstock ( SSTK), up 4.3%, Robert Half International ( RHI), up 2.1%, ManpowerGroup ( MAN), up 1.5% and Jacobs Engineering Group ( JEC), up 1.4%.

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

3. New Oriental Education & Technology Group I ( EDU) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, New Oriental Education & Technology Group I is down $0.74 (-2.8%) to $26.05 on heavy volume. Thus far, 1.3 million shares of New Oriental Education & Technology Group I exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $26.04-$26.79 after having opened the day at $26.62 as compared to the previous trading day's close of $26.79.

New Oriental Education & Technology Group Inc. provides private educational services primarily in the People's Republic of China (PRC). New Oriental Education & Technology Group I has a market cap of $4.2 billion and is part of the services sector. Shares are down 14.9% year-to-date as of the close of trading on Monday. Currently there are 6 analysts that rate New Oriental Education & Technology Group I a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates New Oriental Education & Technology Group I as a buy. 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, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full New Oriental Education & Technology Group I 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, AthenaHealth ( ATHN) is down $5.78 (-4.3%) to $129.81 on heavy volume. Thus far, 915,459 shares of AthenaHealth exchanged hands as compared to its average daily volume of 723,700 shares. The stock has ranged in price between $129.72-$136.99 after having opened the day at $135.93 as compared to the previous trading day's close of $135.59.

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 technology sector. Shares are up 0.8% year-to-date as of the close of trading on Monday. 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. 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.

1. As of noon trading, Alliance Data Systems Corporation ( ADS) is down $3.50 (-1.4%) to $240.71 on average volume. Thus far, 674,694 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 938,700 shares. The stock has ranged in price between $240.05-$248.06 after having opened the day at $245.64 as compared to the previous trading day's close of $244.21.

Alliance Data Systems Corporation provides marketing and loyalty solutions in the United States, Canada, and other countries. Alliance Data Systems Corporation has a market cap of $13.0 billion and is part of the services sector. Shares are down 7.1% 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, compelling growth 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. 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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