Diversified Services Stocks On The Rise With Help From 3 Stocks

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 67 points (0.4%) at 16,436 as of Friday, Aug. 8, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,992 issues advancing vs. 961 declining with 169 unchanged.

The Diversified Services industry currently sits up 0.8% versus the S&P 500, which is up 0.4%. Top gainers within the industry include Education Management ( EDMC), up 56.2%, HMS Holdings ( HMSY), up 11.3%, Air Lease ( AL), up 4.7%, Maximus ( MMS), up 3.5% and AerCap Holdings ( AER), up 2.4%.

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

3. Western Union ( WU) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, Western Union is up $0.22 (1.3%) to $17.12 on average volume. Thus far, 2.2 million shares of Western Union exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $16.94-$17.20 after having opened the day at $16.94 as compared to the previous trading day's close of $16.90.

The Western Union Company provides money movement and payment services worldwide. The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions. The Consumer-to-Consumer segment offers cash money transfer services involving walk-in agent locations. Western Union has a market cap of $9.0 billion and is part of the financial sector. Shares are down 2.0% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts who rate Western Union a buy, 4 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Western Union as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Western Union 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.

2. As of noon trading, AthenaHealth ( ATHN) is up $2.36 (1.9%) to $126.04 on average volume. Thus far, 316,445 shares of AthenaHealth exchanged hands as compared to its average daily volume of 762,200 shares. The stock has ranged in price between $123.02-$127.39 after having opened the day at $123.61 as compared to the previous trading day's close of $123.68.

athenahealth, Inc., a business services company, provides ongoing billing, clinical-related, and other related services to medical group practices primarily in the United States. The company provides services through the athenaNet, a proprietary Internet-based practice management application. AthenaHealth has a market cap of $4.7 billion and is part of the technology sector. Shares are down 8.0% year-to-date as of the close of trading on Thursday. Currently there are 12 analysts who rate AthenaHealth a buy, 1 analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates AthenaHealth 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 compelling growth in net income. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation. Get the full AthenaHealth 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, Tyco International ( TYC) is up $0.26 (0.6%) to $42.96 on light volume. Thus far, 856,052 shares of Tyco International exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $42.72-$43.03 after having opened the day at $42.75 as compared to the previous trading day's close of $42.70.

Tyco International Ltd. provides security, fire detection, suppression, and life safety products and services worldwide. Tyco International has a market cap of $19.0 billion and is part of the services sector. Shares are up 4.0% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts who rate Tyco International a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Tyco International as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Tyco International 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).

null

More from Markets

Dow Drops Over 100 Points on Trade War Worries

Dow Drops Over 100 Points on Trade War Worries

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern