3 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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 40 points (0.3%) at 13,114 as of Friday, Dec. 7, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,438 issues advancing vs. 1,420 declining with 156 unchanged.

The Services sector currently is unchanged today versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the sector include Ryanair Holdings ( RYAAY), down 1.8%, Fidelity National Information Services ( FIS), down 1.8%, CSX ( CSX), down 1.3%, Wynn Resorts ( WYNN), down 1.3% and Yum Brands ( YUM), down 0.8%. Top gainers within the sector include Geo Group ( GEO), up 7.0%, Sears Holdings Corporation ( SHLD), up 3.8%, McGraw-Hill Companies Incorporated ( MHP), up 2.4%, Melco Crown Entertainment ( MPEL), up 1.9% and Grupo Televisa S.A ( TV), up 1.4%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Focus Media ( FMCN) is one of the companies pushing the Services sector lower today. As of noon trading, Focus Media is down $1.48 (-6.0%) to $23.27 on heavy volume Thus far, 4.4 million shares of Focus Media exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $22.58-$24.00 after having opened the day at $23.58 as compared to the previous trading day's close of $24.75.

Focus Media Holding Limited, a multi-platform digital media company, operates liquid crystal display (LCD) network using audiovisual digital displays in China. Focus Media has a market cap of $3.1 billion and is part of the media industry. The company has a P/E ratio of 8.9, below the S&P 500 P/E ratio of 17.7. Shares are up 24.9% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Focus Media a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Focus Media 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, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Focus Media Ratings Report now.

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2. As of noon trading, AutoZone ( AZO) is down $3.88 (-1.1%) to $360.19 on average volume Thus far, 268,883 shares of AutoZone exchanged hands as compared to its average daily volume of 569,100 shares. The stock has ranged in price between $359.63-$367.01 after having opened the day at $367.01 as compared to the previous trading day's close of $364.07.

AutoZone, Inc. engages in retailing and distributing automotive replacement parts and accessories. AutoZone has a market cap of $13.3 billion and is part of the retail industry. The company has a P/E ratio of 14.9, below the S&P 500 P/E ratio of 17.7. Shares are up 10.9% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate AutoZone a buy, no analysts rate it a sell, and 8 rate it a hold.

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

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1. As of noon trading, MasterCard Incorporated ( MA) is down $3.20 (-0.7%) to $477.68 on light volume Thus far, 180,900 shares of MasterCard Incorporated exchanged hands as compared to its average daily volume of 715,200 shares. The stock has ranged in price between $476.21-$482.84 after having opened the day at $481.65 as compared to the previous trading day's close of $480.88.

MasterCard Incorporated, a payments and technology company, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. MasterCard Incorporated has a market cap of $57.0 billion and is part of the diversified services industry. The company has a P/E ratio of 27.7, above the S&P 500 P/E ratio of 17.7. Shares are up 28.2% year to date as of the close of trading on Thursday. Currently there are 22 analysts that rate MasterCard Incorporated a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates MasterCard Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, increase in net income and good cash flow from operations. 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 MasterCard Incorporated Ratings Report now.

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If you are interested in one of these 3 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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