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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 40 points (0.3%) at 12,582 as of Friday, Nov. 16, 2012, 11:59 AM ET. The NYSE advances/declines ratio sits at 1,549 issues advancing vs. 1,392 declining with 99 unchanged.

The Services sector currently sits down 0.7% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the sector include Sears Holdings Corporation ( SHLD), down 17.6%, Best Buy ( BBY), down 9.8%, Ctrip.com International ( CTRP), down 6.8%, Luxottica Group ( LUX), down 2.1% and Royal Caribbean Cruises ( RCL), down 1.9%. Top gainers within the sector include Schiff Nutrition International ( SHF), up 28.6%, OfficeMax ( OMX), up 21.5%, Whirlpool Corporation ( WHR), up 1.8%, Las Vegas Sands ( LVS), up 2.1% and AutoZone ( AZO), up 1.4%.

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

5. J.C. Penney ( JCP) is one of the companies pushing the Services sector lower today. As of noon trading, J.C. Penney is down $0.72 (-4.4%) to $15.78 on average volume Thus far, 6.3 million shares of J.C. Penney exchanged hands as compared to its average daily volume of 8.5 million shares. The stock has ranged in price between $15.69-$16.58 after having opened the day at $16.51 as compared to the previous trading day's close of $16.50.

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 $3.7 billion and is part of the retail industry. The company has a P/E ratio of -7.1, below the S&P 500 P/E ratio of 17.7. Shares are down 53.1% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate J.C. Penney a buy, 3 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.

4. As of noon trading, Bed Bath & Beyond ( BBBY) is down $0.87 (-1.5%) to $56.13 on average volume Thus far, 1.5 million shares of Bed Bath & Beyond exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $55.58-$57.05 after having opened the day at $56.91 as compared to the previous trading day's close of $57.00.

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. Bed Bath & Beyond has a market cap of $13.1 billion and is part of the retail industry. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are down 1.7% year to date as of the close of trading on Thursday. Currently there are 14 analysts that rate Bed Bath & Beyond a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Bed Bath & Beyond as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Bed Bath & Beyond Ratings Report now.

3. As of noon trading, Walgreen Company ( WAG) is down $0.25 (-0.8%) to $31.98 on light volume Thus far, 2.2 million shares of Walgreen Company exchanged hands as compared to its average daily volume of 6.5 million shares. The stock has ranged in price between $31.88-$32.51 after having opened the day at $32.24 as compared to the previous trading day's close of $32.23.

Walgreen Co., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. Walgreen Company has a market cap of $30.5 billion and is part of the retail industry. The company has a P/E ratio of 13.3, below the S&P 500 P/E ratio of 17.7. Shares are down 2.5% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Walgreen Company as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Walgreen Company Ratings Report now.

2. As of noon trading, Costco Wholesale Corporation ( COST) is down $0.74 (-0.8%) to $94.96 on average volume Thus far, 1.2 million shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $94.64-$96.00 after having opened the day at $95.52 as compared to the previous trading day's close of $95.70.

Costco Wholesale Corporation engages in the operation of membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Costco Wholesale Corporation has a market cap of $40.9 billion and is part of the retail industry. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are up 13.4% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Costco Wholesale Corporation a buy, 2 analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Costco Wholesale Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Costco Wholesale Corporation Ratings Report now.

1. As of noon trading, Yum Brands ( YUM) is down $0.43 (-0.6%) to $70.68 on light volume Thus far, 1.2 million shares of Yum Brands exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $70.56-$71.81 after having opened the day at $71.14 as compared to the previous trading day's close of $71.11.

YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants in the United States and internationally. Yum Brands has a market cap of $32.2 billion and is part of the leisure industry. The company has a P/E ratio of 21.2, above the S&P 500 P/E ratio of 17.7. Shares are up 20.5% year to date as of the close of trading on Thursday. 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.

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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