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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 42 points (0.3%) at 14,338 as of Thursday, March 7, 2013, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,674 issues advancing vs. 1,197 declining with 153 unchanged.

The Services sector currently sits up 0.2% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include China Lodging Group ( HTHT), down 12.2%, Meredith Corporation ( MDP), down 6.8%, Ross Stores ( ROST), down 4.9%, Pier 1 Imports ( PIR), down 4.2% and KAR Auction Services ( KAR), down 3.5%. Top gainers within the sector include Hot Topic ( HOTT), up 29.2%, Vail Resorts ( MTN), up 7.2%, John Wiley & Sons ( JW.A), up 6.6%, Gol Intelligent Airlines ( GOL), up 5.8% and Delhaize Group ( DEG), up 4.5%.

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

5. Tractor Supply ( TSCO) is one of the companies pushing the Services sector lower today. As of noon trading, Tractor Supply is down $1.61 (-1.5%) to $102.62 on light volume Thus far, 226,686 shares of Tractor Supply exchanged hands as compared to its average daily volume of 707,100 shares. The stock has ranged in price between $101.75-$104.05 after having opened the day at $103.76 as compared to the previous trading day's close of $104.23.

Tractor Supply Company operates retail farm and ranch stores in the United States. Tractor Supply has a market cap of $7.2 billion and is part of the specialty retail industry. The company has a P/E ratio of 27.4, above the S&P 500 P/E ratio of 17.7. Shares are up 18.0% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate Tractor Supply a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Tractor Supply 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, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Tractor Supply Ratings Report now.

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4. As of noon trading, PetSmart ( PETM) is down $4.55 (-6.8%) to $62.00 on heavy volume Thus far, 5.3 million shares of PetSmart exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $61.30-$62.64 after having opened the day at $61.57 as compared to the previous trading day's close of $66.55.

PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada. PetSmart has a market cap of $7.1 billion and is part of the specialty retail industry. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are down 2.6% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate PetSmart a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates PetSmart as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. 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 PetSmart Ratings Report now.

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3. As of noon trading, Norfolk Southern Corporation ( NSC) is down $1.07 (-1.4%) to $73.33 on light volume Thus far, 901,993 shares of Norfolk Southern Corporation exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $73.13-$74.54 after having opened the day at $74.53 as compared to the previous trading day's close of $74.40.

Norfolk Southern Corporation engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. Norfolk Southern Corporation has a market cap of $23.7 billion and is part of the transportation industry. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 20.3% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Norfolk Southern Corporation a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Norfolk Southern Corporation as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Norfolk Southern Corporation Ratings Report now.

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2. As of noon trading, Union Pacific ( UNP) is down $2.14 (-1.5%) to $136.82 on average volume Thus far, 765,114 shares of Union Pacific exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $136.42-$139.23 after having opened the day at $138.89 as compared to the previous trading day's close of $138.96.

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Union Pacific has a market cap of $65.3 billion and is part of the transportation industry. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are up 10.5% year to date as of the close of trading on Wednesday. Currently there are 18 analysts that rate Union Pacific a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Union Pacific as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Union Pacific Ratings Report now.

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1. As of noon trading, Netflix ( NFLX) is down $4.26 (-2.3%) to $178.68 on average volume Thus far, 2.3 million shares of Netflix exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $176.16-$180.99 after having opened the day at $180.00 as compared to the previous trading day's close of $182.94.

Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. Netflix has a market cap of $10.2 billion and is part of the specialty retail industry. The company has a P/E ratio of 626.7, above the S&P 500 P/E ratio of 17.7. Shares are up 96.3% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Netflix a buy, 4 analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Netflix 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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