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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 28 points (-0.2%) at 16,647 as of Wednesday, May 28, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,518 issues advancing vs. 1,472 declining with 153 unchanged.

The Diversified Services industry currently sits down 0.1% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include Shutterstock ( SSTK), down 5.4%, ExamWorks Group ( EXAM), down 4.7%, Synnex ( SNX), down 1.8%, Genpact ( G), down 1.6% and Thomson Reuters ( TRI), down 0.6%. Top gainers within the industry include YY ( YY), up 2.8%, Air Lease ( AL), up 2.6%, GATX ( GMT), up 2.5%, Fair Isaac ( FICO), up 2.2% and RR Donnelley & Sons ( RRD), up 1.8%.

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

3. Mercadolibre ( MELI) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Mercadolibre is down $1.08 (-1.3%) to $83.04 on average volume. Thus far, 352,904 shares of Mercadolibre exchanged hands as compared to its average daily volume of 854,200 shares. The stock has ranged in price between $82.46-$84.10 after having opened the day at $83.38 as compared to the previous trading day's close of $84.12.

MercadoLibre, Inc. hosts online commerce platforms in Latin America. It offers MercadoLibre Marketplace, an automated online e-commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. Mercadolibre has a market cap of $3.7 billion and is part of the services sector. Shares are down 22.0% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Mercadolibre a buy, 2 analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Mercadolibre as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Get the full Mercadolibre 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, Ulta Salon Cosmetics & Fragrances ( ULTA) is down $2.35 (-2.7%) to $84.87 on average volume. Thus far, 602,757 shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $83.76-$87.17 after having opened the day at $87.00 as compared to the previous trading day's close of $87.22.

ULTA Salon, Cosmetics & Fragrance, Inc. operates specialty retail stores in the United States. Its stores offer an assortment of branded and private label beauty products in cosmetics, fragrance, haircare, skincare, bath and body products, and salon styling tools. Ulta Salon Cosmetics & Fragrances has a market cap of $5.5 billion and is part of the services sector. Shares are down 11.5% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Ulta Salon Cosmetics & Fragrances a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Ulta Salon Cosmetics & Fragrances 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, growth in earnings per share, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Ulta Salon Cosmetics & Fragrances 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 $0.17 (-0.6%) to $29.22 on light volume. Thus far, 1.7 million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 7.9 million shares. The stock has ranged in price between $28.98-$29.43 after having opened the day at $29.29 as compared to the previous trading day's close of $29.39.

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. Shares are up 2.1% year-to-date as of the close of trading on Tuesday. 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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