5 Diversified Services Stocks Driving The Industry Higher
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
Two out of the three major indices are trading up today with the Dow Jones Industrial Average (^DJI) trading down 3 points (0.0%) at 14,544 as of Monday, April 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,423 issues advancing vs. 1,490 declining with 125 unchanged.
The Diversified Services industry currently sits down 0.35 versus the S&P 500, which is up 0.3%. Top gainers within the industry include Acacia Research Coroporation (ACTG), up 4.5%, Fleetcor Technologies (FLT), up 2.1%, Corrections Corporation of America (CXW), up 2.0%, Alliance Data Systems Corporation (ADS), up 1.5% and Genpact (G), up 1.4%. On the negative front, top decliners within the industry include Amerco (UHAL), down 2.80, Tyco International (TYC), down 1.12, H&R Block (HRB), down 0.58 and Hertz Global Holdings (HTZ), down 0.21.
TheStreet Ratings group would like to highlight 5 stocks pushing the industry higher today:
5. Rent-A-Center (RCII) is one of the companies pushing the Diversified Services industry higher today. As of noon trading, Rent-A-Center is up $0.69 (1.94) to $36.13 on average volume Thus far, 312,581 shares of Rent-A-Center exchanged hands as compared to its average daily volume of 703,600 shares. The stock has ranged in price between $35.08-$36.70 after having opened the day at $35.52 as compared to the previous trading day's close of $35.44.
Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. It operates in four segments: Core U.S., RAC Acceptance, International, and ColorTyme. Rent-A-Center has a market cap of $2.0 billion and is part of the services sector. The company has a P/E ratio of 11.3, below the S&P 500 P/E ratio of 17.7. Shares are up 1.4% year to date as of the close of trading on Friday.
TheStreet Ratings rates Rent-A-Center as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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 Rent-A-Center Ratings Report now.