5 Stocks Pushing The Services Sector Lower

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 266 points (-2.0%) at 12,979 as of Wednesday, Nov. 7, 2012, 2:19 PM ET. The NYSE advances/declines ratio sits at 512 issues advancing vs. 2,488 declining with 87 unchanged.

The Services sector currently sits down 1.8% versus the S&P 500, which is down 1.9%. On the negative front, top decliners within the sector include Sirius XM Radio ( SIRI), down 3.4%, DISH Network ( DISH), down 3.1%, Kansas City Southern ( KSU), down 3.2%, Tyco International ( TYC), down 2.7% and Liberty Media Corporation ( LMCA), down 2.7%. Top gainers within the sector include Time Warner ( TWX), up 4.5%, Henry Schein ( HSIC), up 2.1%, News Corporation ( NWSA), up 2.2% and Starbucks Corporation ( SBUX), up 0.7%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. Yum Brands ( YUM) is one of the companies pushing the Services sector lower today. As of noon trading, Yum Brands is down $0.76 (-1.0%) to $72.40 on average volume Thus far, 1.5 million shares of Yum Brands exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $71.56-$73.00 after having opened the day at $72.45 as compared to the previous trading day's close of $73.15.

YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants in the United States and internationally. Yum Brands has a market cap of $32.7 billion and is part of the leisure industry. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are up 24.0% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Yum Brands a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Yum Brands as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. 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 Yum Brands Ratings Report now.

4. As of noon trading, Walt Disney ( DIS) is down $0.26 (-0.5%) to $50.21 on average volume Thus far, 5.2 million shares of Walt Disney exchanged hands as compared to its average daily volume of 7.8 million shares. The stock has ranged in price between $49.59-$50.65 after having opened the day at $50.65 as compared to the previous trading day's close of $50.47.

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. Walt Disney has a market cap of $90.3 billion and is part of the media industry. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 34.2% year to date as of the close of trading on Tuesday. Currently there are 16 analysts that rate Walt Disney a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Walt Disney 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, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Walt Disney Ratings Report now.

3. As of noon trading, Lowe's Companies ( LOW) is down $0.32 (-1.0%) to $32.97 on average volume Thus far, 7.0 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 13.0 million shares. The stock has ranged in price between $32.52-$33.20 after having opened the day at $33.04 as compared to the previous trading day's close of $33.29.

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer. It offers a range of products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $37.7 billion and is part of the retail industry. The company has a P/E ratio of 21.8, above the S&P 500 P/E ratio of 17.7. Shares are up 30.3% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Lowe's Companies a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance 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 Lowe's Companies Ratings Report now.

2. As of noon trading, McDonald's Corporation ( MCD) is down $0.56 (-0.6%) to $87.41 on average volume Thus far, 3.7 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 5.6 million shares. The stock has ranged in price between $86.70-$87.98 after having opened the day at $87.91 as compared to the previous trading day's close of $87.97.

McDonald's Corporation franchises and operates McDonald's restaurants in the global restaurant industry. Its restaurants offer various food items, soft drinks, coffee, and other beverages. McDonald's Corporation has a market cap of $87.8 billion and is part of the leisure industry. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are down 12.3% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates McDonald's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its 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 lackluster performance in the stock itself. Get the full McDonald's Corporation Ratings Report now.

1. As of noon trading, Home Depot ( HD) is down $0.36 (-0.6%) to $62.26 on average volume Thus far, 5.4 million shares of Home Depot exchanged hands as compared to its average daily volume of 8.4 million shares. The stock has ranged in price between $61.43-$62.37 after having opened the day at $62.33 as compared to the previous trading day's close of $62.62.

The Home Depot, Inc., together with its subsidiaries, operates as a home improvement retailer. The company's stores sell building materials, and home improvement and lawn and garden products to do-it-yourself, do-it-for-me (at D-I-F-M), and professional customers. Home Depot has a market cap of $94.0 billion and is part of the retail industry. The company has a P/E ratio of 22.4, above the S&P 500 P/E ratio of 17.7. Shares are up 49.0% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Home Depot a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Home Depot 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, revenue growth, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Home Depot Ratings Report now.

If you are interested in one of these 3 stocks, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

A reminder about TheStreet Ratings group: 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.
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