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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 53 points (-0.4%) at 13,873 as of Thursday, Feb. 21, 2013, 11:50 AM ET. The NYSE advances/declines ratio sits at 851 issues advancing vs. 2,047 declining with 117 unchanged.

The Services sector currently sits down 0.6% versus the S&P 500, which is down 0.6%. On the negative front, top decliners within the sector include Michael Kors Holdings ( KORS), down 2.4%, Luxottica Group ( LUX), down 2.4%, Las Vegas Sands ( LVS), down 2.0%, eBay ( EBAY), down 1.6% and McKesson ( MCK), down 1.2%. Top gainers within the sector include J.C. Penney ( JCP), up 8.1%, Dollar General Corporation ( DG), up 4.2%, Dollar Tree Stores ( DLTR), up 3.5%, Wal-Mart Stores ( WMT), up 3.0% and Target ( TGT), up 1.3%.

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

3. Delta Air Lines ( DAL) is one of the companies pushing the Services sector lower today. As of noon trading, Delta Air Lines is down $0.41 (-3.0%) to $13.41 on average volume Thus far, 9.3 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13.1 million shares. The stock has ranged in price between $13.35-$13.99 after having opened the day at $13.96 as compared to the previous trading day's close of $13.82.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $12.2 billion and is part of the transportation industry. The company has a P/E ratio of 12.0, below the S&P 500 P/E ratio of 17.7. Shares are up 20.5% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Delta Air Lines a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Delta Air Lines as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow. Get the full Delta Air Lines Ratings Report now.

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2. As of noon trading, Time Warner ( TWX) is down $0.51 (-1.0%) to $52.72 on light volume Thus far, 1.8 million shares of Time Warner exchanged hands as compared to its average daily volume of 6.2 million shares. The stock has ranged in price between $52.58-$53.08 after having opened the day at $52.86 as compared to the previous trading day's close of $53.23.

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Film and TV Entertainment, and Publishing. Time Warner has a market cap of $50.9 billion and is part of the media industry. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are up 12.5% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate Time Warner a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Time Warner 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, increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Time Warner Ratings Report now.

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1. As of noon trading, Lowe's Companies ( LOW) is down $0.72 (-1.9%) to $37.92 on average volume Thus far, 6.5 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 9.9 million shares. The stock has ranged in price between $37.23-$38.09 after having opened the day at $37.72 as compared to the previous trading day's close of $38.64.

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 $44.3 billion and is part of the retail industry. The company has a P/E ratio of 23.5, above the S&P 500 P/E ratio of 17.7. Shares are up 11.0% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Lowe's Companies a buy, 1 analyst rates 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 increase in net income, revenue growth, notable return on equity, 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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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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