3 Diversified Services Stocks On The Rise

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 37 points (-0.2%) at 16,809 as of Friday, June 27, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,843 issues advancing vs. 1,114 declining with 177 unchanged.

The Diversified Services industry currently sits up 0.3% versus the S&P 500, which is down 0.1%. Top gainers within the industry include RR Donnelley & Sons ( RRD), up 2.8%, Mercadolibre ( MELI), up 2.5%, Myriad Genetics ( MYGN), up 2.4%, Verisk Analytics ( VRSK), up 0.7% and ManpowerGroup ( MAN), up 0.6%. On the negative front, top decliners within the industry include K12 ( LRN), down 6.5%, Amerco ( UHAL), down 0.9% and Fiserv ( FISV), down 0.5%.

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

3. SBA Communications ( SBAC) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, SBA Communications is up $1.32 (1.3%) to $101.12 on light volume. Thus far, 425,400 shares of SBA Communications exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $98.80-$101.58 after having opened the day at $99.06 as compared to the previous trading day's close of $99.80.

SBA Communications Corporation owns and operates wireless communications tower structures, rooftops, and other structures that support antennas used for wireless communications in the United States and its territories, as well as in Canada, Central America, and South America. SBA Communications has a market cap of $12.9 billion and is part of the services sector. Shares are up 11.1% year-to-date as of the close of trading on Thursday. Currently there are 13 analysts who rate SBA Communications a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates SBA Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full SBA Communications Ratings Report now.

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2. As of noon trading, Alliance Data Systems ( ADS) is up $2.31 (0.8%) to $281.27 on light volume. Thus far, 213,288 shares of Alliance Data Systems exchanged hands as compared to its average daily volume of 910,100 shares. The stock has ranged in price between $277.29-$281.61 after having opened the day at $277.29 as compared to the previous trading day's close of $278.96.

Alliance Data Systems Corporation provides marketing and loyalty solutions in the United States, Canada, and other countries. Alliance Data Systems has a market cap of $15.2 billion and is part of the services sector. Shares are up 6.1% year-to-date as of the close of trading on Thursday. Currently there are 13 analysts who rate Alliance Data Systems a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Alliance Data Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. 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 Alliance Data Systems Ratings Report now.

3x UPSIDE POTENTIAL: 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, Zillow ( Z) is up $1.35 (1.0%) to $139.39 on heavy volume. Thus far, 1.5 million shares of Zillow exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $132.55-$139.98 after having opened the day at $135.99 as compared to the previous trading day's close of $138.04.

Zillow, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company owns and operates Zillow.com. Zillow has a market cap of $4.7 billion and is part of the financial sector. Shares are up 68.9% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Zillow a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Zillow as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share. Get the full Zillow Ratings Report now.

3x UPSIDE POTENTIAL: 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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