4 Stocks Dragging The Wholesale Industry 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 142 points (1.0%) at 14,816 as of Wednesday, April 10, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 2,253 issues advancing vs. 654 declining with 139 unchanged.

The Wholesale industry currently sits up 1.4% versus the S&P 500, which is up 1.2%. Top gainers within the industry include Avnet ( AVT), up 2.5%, Arrow Electronics ( ARW), up 2.4% and Sysco Corporation ( SYY), up 1.1%.

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

4. MSC Industrial Direct ( MSM) is one of the companies pushing the Wholesale industry lower today. As of noon trading, MSC Industrial Direct is down $3.18 (-3.8%) to $80.00 on heavy volume Thus far, 1.2 million shares of MSC Industrial Direct exchanged hands as compared to its average daily volume of 349,400 shares. The stock has ranged in price between $77.39-$80.85 after having opened the day at $80.41 as compared to the previous trading day's close of $83.18.

MSC Industrial Direct Co., Inc., together with its subsidiaries, operates as a direct marketer and distributor of metalworking and maintenance, repair, and operations (MRO) products to industrial customers in the United States. MSC Industrial Direct has a market cap of $4.0 billion and is part of the services sector. The company has a P/E ratio of 20.0, above the S&P 500 P/E ratio of 17.7. Shares are up 10.3% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates MSC Industrial Direct as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full MSC Industrial Direct Ratings Report now.

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3. As of noon trading, LKQ Corporation ( LKQ) is down $0.14 (-0.7%) to $21.30 on average volume Thus far, 1.3 million shares of LKQ Corporation exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $21.16-$21.51 after having opened the day at $21.41 as compared to the previous trading day's close of $21.44.

LKQ Corporation, together with its subsidiaries, provides replacement parts, components, and systems needed to repair vehicles, primarily cars and trucks in the United States, the United Kingdom, Canada, Mexico, and Central America. LKQ Corporation has a market cap of $6.4 billion and is part of the consumer goods sector. The company has a P/E ratio of 24.7, above the S&P 500 P/E ratio of 17.7. Shares are up 1.6% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates LKQ Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full LKQ Corporation Ratings Report now.

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2. As of noon trading, Louisiana-Pacific ( LPX) is down $0.44 (-2.1%) to $20.08 on heavy volume Thus far, 2.2 million shares of Louisiana-Pacific exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $19.84-$20.74 after having opened the day at $20.60 as compared to the previous trading day's close of $20.52.

Louisiana-Pacific Corporation, together with its subsidiaries, engages in manufacturing and distributing building products for new home construction, repair and remodeling, manufactured housing, and light industrial and commercial construction. Louisiana-Pacific has a market cap of $2.9 billion and is part of the services sector. The company has a P/E ratio of 93.5, above the S&P 500 P/E ratio of 17.7. Shares are up 6.2% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Louisiana-Pacific as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Louisiana-Pacific Ratings Report now.

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1. As of noon trading, Wesco International ( WCC) is down $1.12 (-1.6%) to $70.05 on heavy volume Thus far, 823,386 shares of Wesco International exchanged hands as compared to its average daily volume of 740,200 shares. The stock has ranged in price between $69.21-$71.17 after having opened the day at $71.13 as compared to the previous trading day's close of $71.17.

WESCO International, Inc. engages in the distribution of electrical, industrial, and communications maintenance, repair, and operating (MRO) products; and original equipment manufacturers products and construction materials. It also provides supply chain management and logistics services. Wesco International has a market cap of $3.2 billion and is part of the services sector. The company has a P/E ratio of 18.2, above the S&P 500 P/E ratio of 17.7. Shares are up 5.5% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Wesco International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, 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 sub par growth in net income. Get the full Wesco International 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 wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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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