3 Stocks Pulling 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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 83 points (-0.5%) at 16,448 as of Tuesday, May 6, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,223 issues advancing vs. 1,760 declining with 164 unchanged.

The Diversified Services industry currently sits down 0.3% versus the S&P 500, which is down 0.4%. On the negative front, top decliners within the industry include Genpact ( G), down 2.6%, Computer ( CSC), down 1.2%, H&R Block ( HRB), down 1.2% and Fidelity National Information Services ( FIS), down 1.1%. A company within the industry that increased today was Checkpoint Systems ( CKP), up 12.6%.

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

3. YY ( YY) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, YY is down $3.69 (-6.0%) to $58.27 on heavy volume. Thus far, 4.2 million shares of YY exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $57.04-$60.75 after having opened the day at $59.16 as compared to the previous trading day's close of $61.96.

YY Inc., through its subsidiaries, operates an online social platform in the People's Republic of China. YY has a market cap of $3.4 billion and is part of the technology sector. The company has a P/E ratio of 45.2, above the S&P 500 P/E ratio of 17.7. Shares are up 23.2% year-to-date as of the close of trading on Monday. Currently there are 5 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 notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good. 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.

2. As of noon trading, Hertz Global Holdings ( HTZ) is down $0.92 (-3.1%) to $28.48 on heavy volume. Thus far, 9.2 million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 8.4 million shares. The stock has ranged in price between $28.02-$28.66 after having opened the day at $28.54 as compared to the previous trading day's close of $29.40.

Hertz Global Holdings, Inc., through its subsidiaries, is engaged in the car and equipment rental businesses worldwide. It operates through four segments: U.S. Car Rental, International Car Rental, Worldwide Equipment Rental, and All Other Operations. Hertz Global Holdings has a market cap of $13.1 billion and is part of the services sector. The company has a P/E ratio of 38.5, above the S&P 500 P/E ratio of 17.7. Shares are up 2.7% year-to-date as of the close of trading on Monday. Currently there are 5 analysts that rate Hertz Global Holdings a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Hertz Global Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and expanding profit margins. 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 Hertz Global Holdings 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, MasterCard ( MA) is down $0.63 (-0.8%) to $74.19 on light volume. Thus far, 1.9 million shares of MasterCard exchanged hands as compared to its average daily volume of 6.6 million shares. The stock has ranged in price between $73.76-$74.48 after having opened the day at $74.34 as compared to the previous trading day's close of $74.82.

MasterCard Incorporated provides transaction processing and other payment-related services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. MasterCard has a market cap of $83.2 billion and is part of the financial sector. The company has a P/E ratio of 27.6, above the S&P 500 P/E ratio of 17.7. Shares are down 10.4% year-to-date as of the close of trading on Monday. Currently there are 18 analysts that rate MasterCard a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates MasterCard as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, increase in net income and expanding profit margins. 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 MasterCard 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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