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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 79 points (0.6%) at 14,527 as of Tuesday, March 26, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,808 issues advancing vs. 1,104 declining with 127 unchanged.

The Services sector currently is unchanged today versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the sector include Best Buy ( BBY), down 3.4%, Moody's Corporation ( MCO), down 1.3% and Comcast ( CMCSA), down 0.7%. Top gainers within the sector include Liberty Global ( LBTYA), up 2.9%, Las Vegas Sands ( LVS), up 2.9%, Walgreen Company ( WAG), up 2.7%, Dollar Tree Stores ( DLTR), up 2.1% and Marriott International ( MAR), up 2.1%.

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

5. Sears Holdings Corporation ( SHLD) is one of the companies pushing the Services sector lower today. As of noon trading, Sears Holdings Corporation is down $1.09 (-2.1%) to $50.31 on light volume Thus far, 203,091 shares of Sears Holdings Corporation exchanged hands as compared to its average daily volume of 978,500 shares. The stock has ranged in price between $49.97-$51.81 after having opened the day at $51.68 as compared to the previous trading day's close of $51.40.

Sears Holdings Corporation operates as a specialty retailer in the United States and Canada. The company's Kmart segment operates stores that sell merchandise under Jaclyn Smith and Joe Boxer labels; and Sears brand products, such as Kenmore, Craftsman, and DieHard. Sears Holdings Corporation has a market cap of $5.5 billion and is part of the retail industry. Shares are up 24.3% year to date as of the close of trading on Monday. Currently there are no analysts that rate Sears Holdings Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Sears Holdings Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk and poor profit margins. Get the full Sears Holdings Corporation Ratings Report now.

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4. As of noon trading, Limited Brands ( LTD) is down $0.71 (-1.6%) to $44.03 on light volume Thus far, 996,487 shares of Limited Brands exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $43.94-$44.90 after having opened the day at $44.89 as compared to the previous trading day's close of $44.74.

Limited Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty, and personal care products and accessories primarily in the United States and Canada. Limited Brands has a market cap of $12.7 billion and is part of the retail industry. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are down 4.9% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Limited Brands a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Limited Brands as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Get the full Limited Brands Ratings Report now.

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3. As of noon trading, Carnival Corporation ( CCL) is down $0.21 (-0.6%) to $33.43 on average volume Thus far, 2.1 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $33.34-$33.65 after having opened the day at $33.49 as compared to the previous trading day's close of $33.64.

Carnival Corporation operates as a cruise and vacation company worldwide. The company operates in two segments, North America; and Europe, Australia, and Asia. Carnival Corporation has a market cap of $20.2 billion and is part of the leisure industry. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are down 8.5% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Carnival Corporation a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Carnival Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins. Get the full Carnival Corporation Ratings Report now.

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2. As of noon trading, Gap ( GPS) is down $0.99 (-2.8%) to $35.00 on heavy volume Thus far, 3.7 million shares of Gap exchanged hands as compared to its average daily volume of 4.9 million shares. The stock has ranged in price between $34.86-$36.08 after having opened the day at $35.94 as compared to the previous trading day's close of $35.99.

The Gap, Inc. operates as a specialty retailer. The company offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brand names. Gap has a market cap of $17.1 billion and is part of the retail industry. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 15.9% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate Gap a buy, 3 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Gap 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, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Gap Ratings Report now.

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1. As of noon trading, Macy's ( M) is down $0.87 (-2.0%) to $41.49 on average volume Thus far, 2.9 million shares of Macy's exchanged hands as compared to its average daily volume of 5.3 million shares. The stock has ranged in price between $41.44-$42.45 after having opened the day at $42.40 as compared to the previous trading day's close of $42.36.

Macy's, Inc., together with its subsidiaries, operates stores and Internet Websites in the United States. Its retail stores and Internet Web sites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. Macy's has a market cap of $16.9 billion and is part of the retail industry. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 8.6% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Macy's a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Macy's as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, attractive valuation levels and expanding profit margins. 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 Macy's 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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