4 Stocks Underperforming Today 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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 64 points (0.4%) at 14,866 as of Thursday, April 11, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,808 issues advancing vs. 1,100 declining with 140 unchanged.

The Services sector currently sits up 0.7% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the sector include Chipotle Mexican Grill ( CMG), down 1.19, and Shaw Communications ( SJR), down 1.48. Top gainers within the sector include Rite Aid Corporation ( RAD), up 18.9%, Ross Stores ( ROST), up 7.2%, L Brands ( LTD), up 5.4%, CarMax ( KMX), up 3.3% and Nordstrom ( JWN), up 3.4%.

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

4. Melco Crown Entertainment ( MPEL) is one of the companies pushing the Services sector lower today. As of noon trading, Melco Crown Entertainment is down $0.27 (-1.1%) to $23.16 on light volume Thus far, 1.3 million shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $23.07-$23.48 after having opened the day at $23.33 as compared to the previous trading day's close of $23.43.

Melco Crown Entertainment Limited, through its subsidiaries, engages in the development, ownership, and operation of casino gaming and entertainment resort facilities primarily in Macau. Melco Crown Entertainment has a market cap of $12.5 billion and is part of the leisure industry. The company has a P/E ratio of 41.5, above the S&P 500 P/E ratio of 17.7. Shares are up 35.5% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Melco Crown Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, 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 shows low profit margins. Get the full Melco Crown Entertainment Ratings Report now.

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3. As of noon trading, FedEx Corporation ( FDX) is down $0.70 (-0.7%) to $97.25 on average volume Thus far, 940,136 shares of FedEx Corporation exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $96.68-$98.00 after having opened the day at $97.87 as compared to the previous trading day's close of $97.95.

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FedEx Corporation has a market cap of $30.2 billion and is part of the transportation industry. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 6.8% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates FedEx Corporation 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, 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 somewhat disappointing return on equity. Get the full FedEx Corporation Ratings Report now.

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2. As of noon trading, Best Buy ( BBY) is down $0.35 (-1.4%) to $24.47 on average volume Thus far, 6.1 million shares of Best Buy exchanged hands as compared to its average daily volume of 12.4 million shares. The stock has ranged in price between $23.98-$24.90 after having opened the day at $24.60 as compared to the previous trading day's close of $24.82.

Best Buy Co., Inc. operates as a retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Best Buy has a market cap of $8.7 billion and is part of the retail industry. The company has a P/E ratio of 8.5, below the S&P 500 P/E ratio of 17.7. Shares are up 109.5% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Best Buy as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk. Get the full Best Buy Ratings Report now.

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1. As of noon trading, Las Vegas Sands ( LVS) is down $0.56 (-1.0%) to $54.94 on light volume Thus far, 2.3 million shares of Las Vegas Sands exchanged hands as compared to its average daily volume of 6.7 million shares. The stock has ranged in price between $54.75-$55.76 after having opened the day at $55.60 as compared to the previous trading day's close of $55.50.

Las Vegas Sands Corp. develops, owns, and operates integrated resorts in Asia and the United States. Las Vegas Sands has a market cap of $45.2 billion and is part of the leisure industry. The company has a P/E ratio of 29.6, above the S&P 500 P/E ratio of 17.7. Shares are up 20.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Las Vegas Sands as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, good cash flow from operations, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Las Vegas Sands 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.

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