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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 83 points (0.6%) at 13,218 as of Monday, Dec. 17, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,993 issues advancing vs. 968 declining with 126 unchanged.

The Services sector currently sits up 0.5% versus the S&P 500, which is up 0.9%. On the negative front, top decliners within the sector include Cabela's ( CAB), down 5.7%, and J.C. Penney ( JCP), down 3.1%. Top gainers within the sector include Wyndham Worldwide Corporation ( WYN), up 2.6%, Liberty Media Corporation ( LMCA), up 2.6%, Starwood Hotels & Resorts Worldwide ( HOT), up 2.3%, Time Warner ( TWX), up 2.1% and eBay ( EBAY), up 2.3%.

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

3. Brazilian Distribution Company ( CBD) is one of the companies pushing the Services sector lower today. As of noon trading, Brazilian Distribution Company is down $0.88 (-1.9%) to $45.72 on average volume Thus far, 172,385 shares of Brazilian Distribution Company exchanged hands as compared to its average daily volume of 356,600 shares. The stock has ranged in price between $45.67-$46.03 after having opened the day at $45.86 as compared to the previous trading day's close of $46.60.

Companhia Brasileira de Distribuic o engages in the retail of food and non-food products to individual consumers through its chain of hypermarkets, supermarkets, specialized and department stores, and the Internet. Brazilian Distribution Company has a market cap of $12.3 billion and is part of the retail industry. The company has a P/E ratio of 48.5, above the S&P 500 P/E ratio of 17.7. Shares are up 27.8% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate Brazilian Distribution Company a buy, no analysts rate it a sell, and none rate it a hold.

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

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2. As of noon trading, Canadian Pacific Railway ( CP) is down $0.69 (-0.7%) to $99.14 on light volume Thus far, 168,567 shares of Canadian Pacific Railway exchanged hands as compared to its average daily volume of 701,000 shares. The stock has ranged in price between $98.68-$100.49 after having opened the day at $100.08 as compared to the previous trading day's close of $99.83.

Canadian Pacific Railway Limited, through its subsidiaries, operates as a transcontinental railway providing freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States. Canadian Pacific Railway has a market cap of $17.3 billion and is part of the transportation industry. The company has a P/E ratio of 24.4, above the S&P 500 P/E ratio of 17.7. Shares are up 47.7% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Canadian Pacific Railway a buy, 1 analyst rates it a sell, and 13 rate it a hold.

TheStreet Ratings rates Canadian Pacific Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. 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 Canadian Pacific Railway Ratings Report now.

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1. As of noon trading, Sirius XM Radio ( SIRI) is down $0.02 (-0.7%) to $2.89 on average volume Thus far, 38.4 million shares of Sirius XM Radio exchanged hands as compared to its average daily volume of 76.9 million shares. The stock has ranged in price between $2.85-$2.92 after having opened the day at $2.86 as compared to the previous trading day's close of $2.91.

Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. The company broadcasts approximately 135 channels, including music, sports, entertainment, comedy, talk, news, traffic, and weather channels on subscription fee basis through two satellite radio systems. Sirius XM Radio has a market cap of $14.4 billion and is part of the media industry. The company has a P/E ratio of 5.4, below the S&P 500 P/E ratio of 17.7. Shares are up 59.9% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Sirius XM Radio a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Sirius XM Radio as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Sirius XM Radio 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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