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 68 points (-0.5%) at 14,443 as of Monday, March 25, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,111 issues advancing vs. 1,777 declining with 156 unchanged.

The Services sector currently sits down 0.2% versus the S&P 500, which is down 0.3%. On the negative front, top decliners within the sector include eBay ( EBAY), down 3.6%, Luxottica Group ( LUX), down 2.5%, Expeditors International of Washington ( EXPD), down 2.3%, Whole Foods Market ( WFM), down 2.1% and W.W. Grainger ( GWW), down 2.2%. Top gainers within the sector include Apollo Group ( APOL), up 9.8%, McGraw-Hill Companies Incorporated ( MHP), up 3.1%, Melco Crown Entertainment ( MPEL), up 2.4%, AmerisourceBergen ( ABC), up 1.8% and Lowe's Companies ( LOW), up 1.0%.

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

5. Union Pacific ( UNP) is one of the companies pushing the Services sector lower today. As of noon trading, Union Pacific is down $0.99 (-0.7%) to $138.15 on average volume Thus far, 869,002 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 $138.04-$140.26 after having opened the day at $139.96 as compared to the previous trading day's close of $139.14.

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. Currently there are 17 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Union Pacific Ratings Report now.

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4. As of noon trading, Time Warner ( TWX) is down $0.39 (-0.7%) to $56.40 on average volume Thus far, 2.5 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 $56.34-$57.41 after having opened the day at $56.94 as compared to the previous trading day's close of $56.79.

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. The company operates in three segments: Networks, Film and TV Entertainment, and Publishing. Time Warner has a market cap of $52.7 billion and is part of the media industry. Currently there are 17 analysts that rate Time Warner a buy, no analysts rate it a sell, and 8 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 expanding profit margins. 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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3. As of noon trading, Walt Disney ( DIS) is down $0.61 (-1.1%) to $56.17 on average volume Thus far, 3.3 million shares of Walt Disney exchanged hands as compared to its average daily volume of 8.5 million shares. The stock has ranged in price between $56.07-$57.11 after having opened the day at $57.03 as compared to the previous trading day's close of $56.78.

The Walt Disney Company operates as an entertainment company worldwide. Its Media Networks segment engages in broadcast television network, television production and distribution, television stations, broadcast radio networks and stations, and publishing and digital operations. Walt Disney has a market cap of $102.8 billion and is part of the media industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 13.1% year to date as of the close of trading on Friday. Currently there are 15 analysts that rate Walt Disney a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Walt Disney as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Walt Disney Ratings Report now.

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2. As of noon trading, McDonald's Corporation ( MCD) is down $0.67 (-0.7%) to $98.60 on average volume Thus far, 1.9 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $98.54-$99.60 after having opened the day at $99.46 as compared to the previous trading day's close of $99.27.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's Corporation has a market cap of $99.0 billion and is part of the leisure industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates McDonald's Corporation 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, growth in earnings per share and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full McDonald's Corporation Ratings Report now.

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1. As of noon trading, Amazon.com ( AMZN) is down $2.25 (-0.9%) to $255.50 on average volume Thus far, 1.4 million shares of Amazon.com exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $254.97-$259.43 after having opened the day at $258.58 as compared to the previous trading day's close of $257.75.

Amazon.com, Inc. operates as an online retailer in North America and internationally. The company operates in two segments, North America and International. Amazon.com has a market cap of $116.9 billion and is part of the retail industry. Shares are up 1.0% year to date as of the close of trading on Friday. Currently there are 21 analysts that rate Amazon.com a buy, no analysts rate it a sell, and 9 rate it a hold.

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