3 Stocks Dragging In The Diversified Services Industry

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 34 points (0.2%) at 16,956 as of Friday, June 20, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,547 issues advancing vs. 1,406 declining with 177 unchanged.

The Diversified Services industry currently sits down 0.1% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include AthenaHealth ( ATHN), down 3.0%, YY ( YY), down 1.3%, Zillow ( Z), down 1.1%, Priceline Group ( PCLN), down 0.8% and Tyco International ( TYC), down 0.7%. Top gainers within the industry include New Oriental Education & Technology Group I ( EDU), up 1.4%, WEX ( WEX), up 1.4%, Qiagen ( QGEN), up 1.2%, Total System Services ( TSS), up 1.2% and Paychex ( PAYX), up 1.1%.

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

3. Shutterstock ( SSTK) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Shutterstock is down $1.98 (-2.4%) to $81.55 on light volume. Thus far, 120,592 shares of Shutterstock exchanged hands as compared to its average daily volume of 374,000 shares. The stock has ranged in price between $81.55-$84.13 after having opened the day at $84.13 as compared to the previous trading day's close of $83.53.

Shutterstock, Inc. operates an online marketplace for commercial digital imagery. Shutterstock has a market cap of $3.0 billion and is part of the services sector. Shares are down 0.1% year-to-date as of the close of trading on Thursday. Currently there are 4 analysts that rate Shutterstock a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Shutterstock as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation. Get the full Shutterstock 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, RR Donnelley & Sons ( RRD) is down $0.36 (-2.2%) to $15.96 on average volume. Thus far, 1.1 million shares of RR Donnelley & Sons exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $15.92-$16.38 after having opened the day at $16.38 as compared to the previous trading day's close of $16.32.

R.R. Donnelley & Sons Company provides integrated communication solutions to private and public sectors worldwide. It operates through Publishing and Retail Services, Variable Print, Strategic Services, and International segments. RR Donnelley & Sons has a market cap of $3.3 billion and is part of the services sector. Shares are down 19.5% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst that rates RR Donnelley & Sons a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates RR Donnelley & Sons as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk. Get the full RR Donnelley & Sons 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, H&R Block ( HRB) is down $0.28 (-0.8%) to $33.02 on light volume. Thus far, 1.0 million shares of H&R Block exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $32.91-$33.46 after having opened the day at $33.46 as compared to the previous trading day's close of $33.29.

H&R Block, Inc., through its subsidiaries, provides tax preparation and related services to the general public in the United States, Canada, and Australia. H&R Block has a market cap of $9.2 billion and is part of the services sector. Shares are up 14.6% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts that rate H&R Block a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates H&R Block as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full H&R Block 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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