5 Stocks Dragging In The Services Sector

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 46 points (-0.3%) at 14,513 as of Wednesday, March 27, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,149 issues advancing vs. 1,749 declining with 144 unchanged.

The Services sector currently sits down 0.1% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include Best Buy ( BBY), down 3.7%, Ryanair Holdings ( RYAAY), down 2.6%, eBay ( EBAY), down 1.3%, Las Vegas Sands ( LVS), down 1.1% and Priceline.com ( PCLN), down 0.4%. Top gainers within the sector include SAIC ( SAI), up 4.7%, Amazon.com ( AMZN), up 1.7%, Southwest Airlines ( LUV), up 1.2%, Canadian National Railway ( CNI), up 0.6% and Visa ( V), up 0.6%.

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

5. Luxottica Group ( LUX) is one of the companies pushing the Services sector lower today. As of noon trading, Luxottica Group is down $0.50 (-1.0%) to $50.33 on light volume Thus far, 46,390 shares of Luxottica Group exchanged hands as compared to its average daily volume of 146,200 shares. The stock has ranged in price between $49.80-$50.56 after having opened the day at $49.98 as compared to the previous trading day's close of $50.83.

Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, and sports eyewear worldwide. The company operates in two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. Luxottica Group has a market cap of $23.8 billion and is part of the specialty retail industry. The company has a P/E ratio of 51.6, above the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates Luxottica Group a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Luxottica Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, good cash flow from operations 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 Luxottica Group Ratings Report now.

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4. As of noon trading, Discovery Communications ( DISCA) is down $1.08 (-1.4%) to $78.45 on average volume Thus far, 768,503 shares of Discovery Communications exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $77.58-$79.12 after having opened the day at $78.85 as compared to the previous trading day's close of $79.53.

Discovery Communications, Inc. operates as a non fiction media company worldwide. It operates through three segments: U.S. Networks, International Networks, and Education. The company provides original and purchased content across various distribution platforms. Discovery Communications has a market cap of $11.5 billion and is part of the media industry. The company has a P/E ratio of 31.5, above the S&P 500 P/E ratio of 17.7. Shares are up 25.3% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Discovery Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins 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 Discovery Communications Ratings Report now.

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3. As of noon trading, Wynn Resorts ( WYNN) is down $1.43 (-1.2%) to $123.11 on light volume Thus far, 430,092 shares of Wynn Resorts exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $123.11-$124.44 after having opened the day at $123.86 as compared to the previous trading day's close of $124.54.

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. Wynn Resorts has a market cap of $12.3 billion and is part of the leisure industry. The company has a P/E ratio of 25.2, above the S&P 500 P/E ratio of 17.7. Shares are up 10.7% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Wynn Resorts a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Wynn Resorts as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Wynn Resorts Ratings Report now.

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2. As of noon trading, Sirius XM Radio ( SIRI) is down $0.02 (-0.7%) to $3.06 on light volume Thus far, 14.7 million shares of Sirius XM Radio exchanged hands as compared to its average daily volume of 56.0 million shares. The stock has ranged in price between $3.05-$3.08 after having opened the day at $3.07 as compared to the previous trading day's close of $3.08.

Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. The company broadcasts music, sports, entertainment, comedy, talk, news, traffic, and weather channels on subscription fee basis through two satellite radio systems. Sirius XM Radio has a market cap of $20.1 billion and is part of the media industry. The company has a P/E ratio of 6.0, below the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Sirius XM Radio a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Sirius XM Radio as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, expanding profit margins and good cash flow from operations. 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 Sirius XM Radio Ratings Report now.

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1. As of noon trading, Dollar General Corporation ( DG) is down $1.11 (-2.1%) to $51.11 on average volume Thus far, 3.4 million shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $50.77-$51.56 after having opened the day at $50.88 as compared to the previous trading day's close of $52.22.

Dollar General Corporation operates as a discount retailer primarily in the southern, southwestern, midwestern, and eastern United States. Dollar General Corporation has a market cap of $16.8 billion and is part of the retail industry. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. Shares are up 18.4% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Dollar General Corporation a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Dollar General Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Dollar General Corporation 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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