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 27 points (-0.2%) at 12,904 as of Thursday, Nov. 8, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,218 issues advancing vs. 1,656 declining with 135 unchanged.

The Services sector currently sits down 0.5% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include Orient-Express Hotels ( OEH), down 10.8%, Whole Foods Market ( WFM), down 4.4%, Foot Locker ( FL), down 3.6%, Tim Hortons ( THI), down 3.0% and Sears Holdings Corporation ( SHLD), down 2.3%. Top gainers within the sector include Monster Worldwide ( MWW), up 18.5%, Matson ( MATX), up 11.6%, AMC Networks ( AMCX), up 10.7%, Wendy's ( WEN), up 6.6% and Amerco ( UHAL), up 4.2%.

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

5. Kohl's ( KSS) is one of the companies pushing the Services sector lower today. As of noon trading, Kohl's is down $2.14 (-3.9%) to $52.18 on heavy volume Thus far, 3.0 million shares of Kohl's exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $52.04-$53.38 after having opened the day at $52.40 as compared to the previous trading day's close of $54.32.

Kohl's Corporation operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. Kohl's has a market cap of $12.9 billion and is part of the retail industry. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Kohl's a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Kohl's as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Kohl's Ratings Report now.

4. As of noon trading, J.C. Penney ( JCP) is down $0.80 (-3.5%) to $22.00 on average volume Thus far, 4.8 million shares of J.C. Penney exchanged hands as compared to its average daily volume of 7.2 million shares. The stock has ranged in price between $21.91-$22.80 after having opened the day at $22.78 as compared to the previous trading day's close of $22.80.

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. J.C. Penney has a market cap of $5.2 billion and is part of the retail industry. The company has a P/E ratio of -9.5, below the S&P 500 P/E ratio of 17.7. Shares are down 35.1% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate J.C. Penney a buy, 2 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates J.C. Penney as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk. Get the full J.C. Penney Ratings Report now.

3. As of noon trading, Macy's ( M) is down $0.31 (-0.8%) to $40.14 on light volume Thus far, 1.7 million shares of Macy's exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $40.08-$40.67 after having opened the day at $40.37 as compared to the previous trading day's close of $40.45.

Macy's, Inc., together with its subsidiaries, operates stores and Internet Websites in the United States. Its retail stores and Internet Web sites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. Macy's has a market cap of $16.7 billion and is part of the retail industry. The company has a P/E ratio of 13.1, below the S&P 500 P/E ratio of 17.7. Shares are up 28.6% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Macy's a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Macy's as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, expanding profit margins 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 Macy's Ratings Report now.

2. As of noon trading, Gap ( GPS) is down $0.38 (-1.1%) to $34.88 on light volume Thus far, 1.1 million shares of Gap exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $34.80-$35.32 after having opened the day at $35.16 as compared to the previous trading day's close of $35.26.

The Gap, Inc. operates as a specialty retailer. The company offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brand names. Gap has a market cap of $17.3 billion and is part of the retail industry. The company has a P/E ratio of 20.1, above the S&P 500 P/E ratio of 17.7. Shares are up 93.7% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Gap a buy, 3 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Gap as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Gap Ratings Report now.

1. As of noon trading, Chipotle Mexican Grill ( CMG) is down $6.44 (-2.4%) to $266.42 on average volume Thus far, 434,002 shares of Chipotle Mexican Grill exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $266.00-$274.61 after having opened the day at $274.61 as compared to the previous trading day's close of $272.86.

Chipotle Mexican Grill, Inc. develops and operates fast-casual, fresh Mexican food restaurants in the United States, Canada, the United Kingdom, and France. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. Chipotle Mexican Grill has a market cap of $8.8 billion and is part of the leisure industry. The company has a P/E ratio of 32.5, above the S&P 500 P/E ratio of 17.7. Shares are down 19.2% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Chipotle Mexican Grill a buy, 2 analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Chipotle Mexican Grill as a buy. 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Chipotle Mexican Grill Ratings Report now.

If you are interested in one of these 5 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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