ACTG, AIRM, GPC And MCD, Pushing 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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 31 points (-0.2%) at 14,506 as of Friday, April 19, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,094 issues advancing vs. 778 declining with 149 unchanged.

The Services sector currently sits up 0.8% versus the S&P 500, which is up 0.7%. Top gainers within the sector include Chipotle Mexican Grill ( CMG), up 9.8%, Hertz Global Holdings ( HTZ), up 3.1%, CarMax ( KMX), up 3.0%, Wynn Resorts ( WYNN), up 2.9% and CBS Corporation ( CBS), up 2.9%.

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

4. Acacia Research Coroporation ( ACTG) is one of the companies pushing the Services sector lower today. As of noon trading, Acacia Research Coroporation is down $7.32 (-24.8%) to $22.25 on heavy volume Thus far, 4.1 million shares of Acacia Research Coroporation exchanged hands as compared to its average daily volume of 567,300 shares. The stock has ranged in price between $21.64-$27.46 after having opened the day at $27.30 as compared to the previous trading day's close of $29.57.

Acacia Research Corporation, through its subsidiaries, acquires, develops, licenses, and enforces patented technologies in the United States. Acacia Research Coroporation has a market cap of $1.5 billion and is part of the diversified services industry. The company has a P/E ratio of 23.8, above the S&P 500 P/E ratio of 17.7. Shares are up 15.0% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Acacia Research Coroporation 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 expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Acacia Research Coroporation Ratings Report now.

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3. As of noon trading, Air Methods ( AIRM) is down $6.03 (-13.1%) to $39.87 on heavy volume Thus far, 2.7 million shares of Air Methods exchanged hands as compared to its average daily volume of 371,000 shares. The stock has ranged in price between $37.57-$41.13 after having opened the day at $38.00 as compared to the previous trading day's close of $45.90.

Air Methods Corporation, together with its subsidiaries, provides air medical emergency transport services and systems in the United States. The company operates in two segments, Air Medical Services (AMS) and United Rotorcraft (UR). Air Methods has a market cap of $1.9 billion and is part of the transportation industry. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 29.2% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Air Methods 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 has had generally high debt management risk by most measures that we evaluated. Get the full Air Methods Ratings Report now.

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2. As of noon trading, Genuine Parts Company ( GPC) is down $1.81 (-2.4%) to $73.49 on heavy volume Thus far, 1.4 million shares of Genuine Parts Company exchanged hands as compared to its average daily volume of 858,600 shares. The stock has ranged in price between $71.87-$74.82 after having opened the day at $73.18 as compared to the previous trading day's close of $75.30.

Genuine Parts Company distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, the Dominican Republic, Mexico, and Canada. Genuine Parts Company has a market cap of $11.7 billion and is part of the wholesale industry. The company has a P/E ratio of 18.2, 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 Thursday.

TheStreet Ratings rates Genuine Parts Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Genuine Parts Company Ratings Report now.

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1. As of noon trading, McDonald's Corporation ( MCD) is down $2.16 (-2.1%) to $99.75 on heavy volume Thus far, 5.0 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 4.9 million shares. The stock has ranged in price between $99.45-$101.44 after having opened the day at $100.58 as compared to the previous trading day's close of $101.91.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's Corporation has a market cap of $102.8 billion and is part of the leisure industry. The company has a P/E ratio of 19.1, above the S&P 500 P/E ratio of 17.7. Shares are up 15.5% year to date as of the close of trading on Thursday.

TheStreet Ratings rates McDonald's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share 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 McDonald's 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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