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 down 19 points (-0.1%) at 13,006 as of Monday, Dec. 3, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,239 issues advancing vs. 1,655 declining with 129 unchanged.

The Services sector currently sits down 0.2% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the sector include Madison Square Garden ( MSG), down 3.1%, Netflix ( NFLX), down 2.5%, Kansas City Southern ( KSU), down 2.4%, Delta Air Lines ( DAL), down 2.0% and Tractor Supply ( TSCO), down 1.9%. Top gainers within the sector include Ctrip.com International ( CTRP), up 3.4%, Sirius XM Radio ( SIRI), up 2.4%, Liberty Global ( LBTYK), up 2.2%, Brazilian Distribution Company ( CBD), up 1.8% and Las Vegas Sands ( LVS), up 1.9%.

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

5. Family Dollar Stores ( FDO) is one of the companies pushing the Services sector lower today. As of noon trading, Family Dollar Stores is down $0.65 (-0.9%) to $70.55 on light volume Thus far, 460,163 shares of Family Dollar Stores exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $70.49-$71.25 after having opened the day at $71.05 as compared to the previous trading day's close of $71.20.

Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low- and middle-income consumers in the United States. Family Dollar Stores has a market cap of $8.1 billion and is part of the retail industry. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are up 23.5% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Family Dollar Stores a buy, 2 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Family Dollar Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase 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 is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Family Dollar Stores Ratings Report now.

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