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 lower today with the Dow Jones Industrial Average ( ^DJI) trading up 24 points (0.1%) at 16,720 as of Tuesday, May 13, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,382 issues advancing vs. 1,595 declining with 161 unchanged.

The Diversified Services industry currently sits down 0.9% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include ExamWorks Group ( EXAM), down 12.7%, Advisory Board ( ABCO), down 4.3%, Shutterstock ( SSTK), down 4.2%, Financial Engines ( FNGN), down 4.2% and Altisource Portfolio Solutions ( ASPS), down 3.3%. Top gainers within the industry include Convergys Corporation ( CVG), up 2.2%, VCA Antech ( WOOF), up 1.9%, GATX ( GMT), up 1.4% and Booz Allen Hamilton ( BAH), up 1.2%.

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

3. McGraw Hill Financial ( MHFI) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, McGraw Hill Financial is down $0.47 (-0.6%) to $79.00 on light volume. Thus far, 562,951 shares of McGraw Hill Financial exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $78.74-$79.82 after having opened the day at $79.44 as compared to the previous trading day's close of $79.47.

McGraw Hill Financial, Inc., a financial intelligence company, provides credit ratings, benchmarks, and analytics to capital and commodity markets worldwide. McGraw Hill Financial has a market cap of $21.4 billion and is part of the services sector. Shares are up 1.6% year-to-date as of the close of trading on Monday. Currently there are 8 analysts that rate McGraw Hill Financial a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates McGraw Hill Financial as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full McGraw Hill Financial 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 $1.94 (-3.4%) to $54.73 on average volume. Thus far, 1.6 million shares of YY exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $54.27-$57.72 after having opened the day at $56.86 as compared to the previous trading day's close of $56.67.

YY Inc., through its subsidiaries, operates an online social platform in the People's Republic of China. YY has a market cap of $2.9 billion and is part of the technology sector. Shares are up 12.7% 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 stock itself is trading at a premium valuation. 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, Hertz Global Holdings ( HTZ) is down $0.30 (-1.1%) to $28.19 on light volume. Thus far, 2.2 million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 8.5 million shares. The stock has ranged in price between $28.06-$28.64 after having opened the day at $28.45 as compared to the previous trading day's close of $28.49.

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 $12.5 billion and is part of the services sector. Shares are down 0.5% 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, increase in stock price during the past year 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.

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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