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 89 points (-0.7%) at 12,919 as of Monday, Nov. 26, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 886 issues advancing vs. 2,023 declining with 120 unchanged.

The Services sector currently sits down 0.4% versus the S&P 500, which is down 0.7%. On the negative front, top decliners within the sector include Macy's ( M), down 3.8%, Whole Foods Market ( WFM), down 2.7%, Nordstrom ( JWN), down 2.7%, Target ( TGT), down 2.2% and LATAM Airlines Group S.A ( LFL), down 1.9%.

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

5. Visa ( V) is one of the companies pushing the Services sector lower today. As of noon trading, Visa is down $1.40 (-0.9%) to $146.72 on light volume Thus far, 1.0 million shares of Visa exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $146.42-$147.61 after having opened the day at $147.41 as compared to the previous trading day's close of $148.12.

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $78.5 billion and is part of the diversified services industry. The company has a P/E ratio of 46.4, above the S&P 500 P/E ratio of 17.7. Shares are up 45.9% year to date as of the close of trading on Friday. Currently there are 23 analysts that rate Visa a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Visa as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Visa Ratings Report now.

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4. As of noon trading, Comcast ( CMCSA) is down $0.28 (-0.8%) to $36.63 on light volume Thus far, 2.5 million shares of Comcast exchanged hands as compared to its average daily volume of 12.3 million shares. The stock has ranged in price between $36.57-$36.83 after having opened the day at $36.69 as compared to the previous trading day's close of $36.91.

Comcast Corporation provides entertainment, information, and communications products and services in the United States and internationally. The company's Cable Communications segment offers video, high-speed Internet, and voice services to residential and business customers. Comcast has a market cap of $77.3 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 55.7% year to date as of the close of trading on Friday. Currently there are 18 analysts that rate Comcast a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Comcast 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, robust revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Comcast Ratings Report now.

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3. As of noon trading, Wal-Mart Stores ( WMT) is down $0.58 (-0.8%) to $69.62 on average volume Thus far, 3.4 million shares of Wal-Mart Stores exchanged hands as compared to its average daily volume of 7.2 million shares. The stock has ranged in price between $69.45-$70.23 after having opened the day at $70.13 as compared to the previous trading day's close of $70.20.

Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. It operates retail stores, restaurants, discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, apparel stores, Sam's Clubs, and neighborhood markets, as well as walmart.com; and samsclub.com. Wal-Mart Stores has a market cap of $231.6 billion and is part of the retail industry. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 17.5% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Wal-Mart Stores a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Wal-Mart Stores Ratings Report now.

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2. As of noon trading, McDonald's Corporation ( MCD) is down $0.98 (-1.1%) to $86.06 on average volume Thus far, 2.4 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 6.0 million shares. The stock has ranged in price between $85.86-$86.67 after having opened the day at $86.53 as compared to the previous trading day's close of $87.05.

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. The company operates approximately 34,000 restaurants in 120 countries around the world. McDonald's Corporation has a market cap of $86.4 billion and is part of the leisure industry. The company has a P/E ratio of 16.2, below the S&P 500 P/E ratio of 17.7. Shares are down 13.2% year to date as of the close of trading on Friday. Currently there are 15 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 largely solid financial position with reasonable debt levels by most measures, expanding profit margins 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.

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1. As of noon trading, Home Depot ( HD) is down $0.48 (-0.7%) to $64.34 on light volume Thus far, 2.2 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 $64.16-$64.89 after having opened the day at $64.60 as compared to the previous trading day's close of $64.82.

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 $96.6 billion and is part of the retail industry. The company has a P/E ratio of 22.7, above the S&P 500 P/E ratio of 17.7. Shares are up 54.2% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Home Depot a buy, no analysts rate it a sell, and 12 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, growth in earnings per share, 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.

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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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