5 Services Stocks Dragging The Sector Down

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 45 points (-0.3%) at 14,466 as of Thursday, March 21, 2013, 12:44 PM ET. The NYSE advances/declines ratio sits at 1,235 issues advancing vs. 1,661 declining with 139 unchanged.

The Services sector currently sits down 0.3% versus the S&P 500, which is down 0.4%. On the negative front, top decliners within the sector include Scholastic Corporation ( SCHL), down 15.2%, Guess ( GES), down 4.9%, Charter Communications ( CHTR), down 3.4%, Airgas ( ARG), down 3.0% and Ryanair Holdings ( RYAAY), down 2.9%. Top gainers within the sector include Ross Stores ( ROST), up 3.4%, Fleetcor Technologies ( FLT), up 1.9%, Tim Hortons ( THI), up 0.9%, Netflix ( NFLX), up 1.0% and Priceline.com ( PCLN), up 0.9%.

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

5. Comcast ( CMCSK) is one of the companies pushing the Services sector lower today. As of noon trading, Comcast is down $0.46 (-1.2%) to $38.48 on light volume Thus far, 737,425 shares of Comcast exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $38.36-$38.92 after having opened the day at $38.78 as compared to the previous trading day's close of $38.94.

Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. Comcast has a market cap of $19.5 billion and is part of the media 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 6.0% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Comcast a buy, no analysts rate it a sell, and none rate it a hold.

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

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4. As of noon trading, Tiffany ( TIF) is down $1.26 (-1.8%) to $68.33 on average volume Thus far, 1.1 million shares of Tiffany exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $68.05-$69.37 after having opened the day at $69.10 as compared to the previous trading day's close of $69.59.

Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. Tiffany has a market cap of $8.7 billion and is part of the specialty retail industry. The company has a P/E ratio of 21.3, above the S&P 500 P/E ratio of 17.7. Shares are up 19.5% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Tiffany a buy, 1 analyst rates it a sell, and 9 rate it a hold.

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

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3. As of noon trading, J.C. Penney ( JCP) is down $0.60 (-3.7%) to $15.58 on average volume Thus far, 8.5 million shares of J.C. Penney exchanged hands as compared to its average daily volume of 13.0 million shares. The stock has ranged in price between $15.46-$16.15 after having opened the day at $16.08 as compared to the previous trading day's close of $16.17.

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. J.C. Penney has a market cap of $3.6 billion and is part of the retail industry. Shares are down 17.4% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates J.C. Penney a buy, 4 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates J.C. Penney as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk. Get the full J.C. Penney Ratings Report now.

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2. As of noon trading, Time Warner Cable ( TWC) is down $1.35 (-1.4%) to $94.27 on average volume Thus far, 1.6 million shares of Time Warner Cable exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $93.74-$95.24 after having opened the day at $95.00 as compared to the previous trading day's close of $95.62.

Time Warner Cable Inc., together with its subsidiaries, offers video, high-speed data, and voice services to residential and business service customers over its broadband cable systems in the United States. Time Warner Cable has a market cap of $27.6 billion and is part of the media industry. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are down 3.1% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Time Warner Cable a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Time Warner Cable as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Time Warner Cable Ratings Report now.

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1. As of noon trading, Directv ( DTV) is down $0.36 (-0.6%) to $54.97 on light volume Thus far, 1.8 million shares of Directv exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $54.83-$55.34 after having opened the day at $55.09 as compared to the previous trading day's close of $55.33.

DIRECTV provides digital television entertainment in the United States and Latin America. The company engages in acquiring, promoting, selling, and distributing digital entertainment programming primarily through satellite to residential and commercial subscribers. Directv has a market cap of $31.4 billion and is part of the media 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 9.3% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Directv a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Directv as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, increase in net income, revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Directv 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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