4 Stocks Dragging The Services Sector Downward

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 97 points (0.7%) at 14,670 as of Tuesday, April 2, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,756 issues advancing vs. 1,114 declining with 151 unchanged.

The Services sector currently sits up 0.3% versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the sector include United Continental Holdings ( UAL), down 4.0%, and Southwest Airlines ( LUV), down 3.7%. Top gainers within the sector include Hertz Global Holdings ( HTZ), up 7.2%, Urban Outfitters ( URBN), up 4.8%, Luxottica Group ( LUX), up 2.6%, Liberty Global ( LBTYK), up 2.5% and Grupo Televisa S.A ( TV), up 2.5%.

TheStreet Ratings group would like to highlight 4 stocks pushing the sector lower today:

4. Alaska Air Group ( ALK) is one of the companies pushing the Services sector lower today. As of noon trading, Alaska Air Group is down $3.46 (-5.4%) to $60.14 on heavy volume Thus far, 984,159 shares of Alaska Air Group exchanged hands as compared to its average daily volume of 717,700 shares. The stock has ranged in price between $59.71-$63.12 after having opened the day at $62.97 as compared to the previous trading day's close of $63.60.

Alaska Air Group, Inc., through its subsidiaries, provides scheduled air transportation for passengers and cargo. Alaska Air Group has a market cap of $4.5 billion and is part of the transportation industry. The company has a P/E ratio of 14.5, below the S&P 500 P/E ratio of 17.7. Shares are up 47.6% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate Alaska Air Group a buy, 2 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Alaska Air Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Alaska Air Group Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

3. As of noon trading, Delta Air Lines ( DAL) is down $1.14 (-7.0%) to $15.11 on heavy volume Thus far, 28.8 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13.0 million shares. The stock has ranged in price between $14.77-$15.58 after having opened the day at $15.40 as compared to the previous trading day's close of $16.25.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. Its route network is centered around a system of hub and international gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $14.1 billion and is part of the transportation industry. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 36.9% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Delta Air Lines a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Delta Air Lines as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow. Get the full Delta Air Lines Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

2. As of noon trading, Michael Kors Holdings ( KORS) is down $0.84 (-1.5%) to $54.66 on light volume Thus far, 1.7 million shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 5.7 million shares. The stock has ranged in price between $54.64-$56.35 after having opened the day at $55.89 as compared to the previous trading day's close of $55.50.

Michael Kors Holdings Limited engages in the design, marketing, distribution, and retail of branded women's apparel and accessories, and men's apparel. The company sells its products primarily under the names of Michael Kors, MICHAEL KORS, MICHAEL MICHAEL KORS, and KORS MICHAEL KORS. Michael Kors Holdings has a market cap of $11.4 billion and is part of the retail industry. The company has a P/E ratio of 35.3, above the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Michael Kors Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Michael Kors Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and robust revenue growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation. Get the full Michael Kors Holdings Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

1. As of noon trading, Yum Brands ( YUM) is down $1.21 (-1.7%) to $69.96 on average volume Thus far, 2.6 million shares of Yum Brands exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $69.76-$70.92 after having opened the day at $70.83 as compared to the previous trading day's close of $71.17.

YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants in the United States and internationally. It operates in six segments: YUM Restaurants China, YUM Restaurants International, Taco Bell U.S., KFC U.S., Pizza Hut U.S., and YUM Restaurants India. Yum Brands has a market cap of $32.4 billion and is part of the leisure 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 7.2% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Yum Brands a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Yum Brands 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 and increase in stock price during the past year. 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 Yum Brands Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

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.

null

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%