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 15 points (0.1%) at 12,980 as of Tuesday, Dec. 4, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,319 issues advancing vs. 1,553 declining with 162 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 Net 1 Ueps Technologies ( UEPS), down 56.6%, Vail Resorts ( MTN), down 10.2%, Darden Restaurants ( DRI), down 9.6%, Melco Crown Entertainment ( MPEL), down 6.8% and Gap ( GPS), down 6.9%.

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

5. Starbucks Corporation ( SBUX) is one of the companies pushing the Services sector lower today. As of noon trading, Starbucks Corporation is down $0.68 (-1.3%) to $51.10 on light volume Thus far, 2.2 million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 8.4 million shares. The stock has ranged in price between $51.08-$51.98 after having opened the day at $51.65 as compared to the previous trading day's close of $51.79.

Starbucks Corporation purchases and roasts whole bean coffees. It operates 6,705 company-operated stores and 4,082 licensed stores in the United States; and 2,326 company-operated stores and 3,890 licensed stores in Canada, the U.K., China, Germany, Thailand, and internationally. Starbucks Corporation has a market cap of $38.6 billion and is part of the leisure industry. The company has a P/E ratio of 29.0, above the S&P 500 P/E ratio of 17.7. Shares are up 12.7% year to date as of the close of trading on Monday. Currently there are 17 analysts that rate Starbucks Corporation a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Starbucks Corporation 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, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Starbucks Corporation Ratings Report now.

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4. As of noon trading, Walt Disney ( DIS) is down $0.34 (-0.7%) to $48.95 on light volume Thus far, 2.6 million shares of Walt Disney exchanged hands as compared to its average daily volume of 8.9 million shares. The stock has ranged in price between $48.85-$49.42 after having opened the day at $49.25 as compared to the previous trading day's close of $49.29.

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. Walt Disney has a market cap of $88.0 billion and is part of the media industry. The company has a P/E ratio of 15.9, below the S&P 500 P/E ratio of 17.7. Shares are up 32.4% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Walt Disney a buy, no analysts rate it a sell, and 10 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, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Walt Disney Ratings Report now.

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3. As of noon trading, Lowe's Companies ( LOW) is down $0.37 (-1.0%) to $35.67 on light volume Thus far, 3.7 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 12.4 million shares. The stock has ranged in price between $35.66-$36.01 after having opened the day at $35.91 as compared to the previous trading day's close of $36.04.

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 $41.2 billion and is part of the retail 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 42.2% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Lowe's Companies a buy, no analysts rate it a sell, and 9 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, increase in net income, revenue growth, reasonable valuation levels and good cash flow from operations. 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 Lowe's Companies Ratings Report now.

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2. As of noon trading, McDonald's Corporation ( MCD) is down $0.41 (-0.5%) to $86.65 on light volume Thus far, 1.9 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 $86.49-$87.09 after having opened the day at $86.64 as compared to the previous trading day's close of $87.06.

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 $87.4 billion and is part of the leisure industry. The company has a P/E ratio of 16.4, 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 Monday. Currently there are 13 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 11 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, Priceline.com ( PCLN) is down $4.49 (-0.7%) to $663.31 on light volume Thus far, 196,147 shares of Priceline.com exchanged hands as compared to its average daily volume of 871,300 shares. The stock has ranged in price between $659.51-$668.80 after having opened the day at $665.50 as compared to the previous trading day's close of $667.80.

priceline.com Incorporated, together with its subsidiaries, operates as an online travel company. Priceline.com has a market cap of $33.1 billion and is part of the leisure industry. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are up 41.8% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Priceline.com a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Priceline.com 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 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 Priceline.com 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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