5 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

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 14,544 as of Monday, April 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,423 issues advancing vs. 1,490 declining with 125 unchanged.

The Services sector currently sits down 0.21 versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the sector include Grupo Aeroportuario del Sureste S.A.B. de ( ASR), down 6.08, Gap ( GPS), down 1.78, Genuine Parts Company ( GPC), down 1.49, Tyco International ( TYC), down 1.12 and McDonald's Corporation ( MCD), down 0.83. Top gainers within the sector include Delhaize Group ( DEG), up 11.1%, Netflix ( NFLX), up 5.6%, Six Flags Entertainment ( SIX), up 5.3%, Fleetcor Technologies ( FLT), up 2.1% and Companhia Brasileira De Distribuicao ( CBD), up 2.1%.

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

5. Southwest Airlines ( LUV) is one of the companies pushing the Services sector lower today. As of noon trading, Southwest Airlines is down $0.12 (-0.9%) to $13.22 on average volume Thus far, 4.0 million shares of Southwest Airlines exchanged hands as compared to its average daily volume of 7.4 million shares. The stock has ranged in price between $13.11-$13.48 after having opened the day at $13.46 as compared to the previous trading day's close of $13.34.

Southwest Airlines Co. operates passenger airlines that provide scheduled air transportation services in the United States. As of December 31, 2012, the company operated 694 aircraft, including 606 Boeing 737 aircraft and 88 Boeing 717 aircraft. Southwest Airlines has a market cap of $9.4 billion and is part of the transportation industry. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 30.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates Southwest Airlines as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels, 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 Southwest Airlines Ratings Report now.

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4. As of noon trading, United Continental Holdings ( UAL) is down $0.33 (-1.1%) to $30.27 on light volume Thus far, 1.5 million shares of United Continental Holdings exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $29.77-$30.60 after having opened the day at $30.60 as compared to the previous trading day's close of $30.60.

United Continental Holdings, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company operates in six continents from its hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark, San Francisco, Tokyo, and Washington, D.C. United Continental Holdings has a market cap of $10.1 billion and is part of the transportation industry. Shares are up 10.2% year to date as of the close of trading on Friday.

TheStreet Ratings rates United Continental Holdings as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. Get the full United Continental Holdings Ratings Report now.

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3. As of noon trading, Carnival Corporation ( CCL) is down $0.23 (-0.7%) to $33.16 on average volume Thus far, 2.2 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $32.93-$33.50 after having opened the day at $33.36 as compared to the previous trading day's close of $33.39.

Carnival Corporation operates as a cruise and vacation company worldwide. The company operates in two segments, North America; and Europe, Australia, and Asia. Carnival Corporation has a market cap of $19.7 billion and is part of the leisure industry. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are down 9.2% year to date as of the close of trading on Friday.

TheStreet Ratings rates Carnival Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins. Get the full Carnival Corporation Ratings Report now.

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2. As of noon trading, FedEx Corporation ( FDX) is down $0.36 (-0.4%) to $92.03 on light volume Thus far, 792,732 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 $90.95-$92.85 after having opened the day at $92.67 as compared to the previous trading day's close of $92.39.

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 $29.1 billion and is part of the transportation industry. The company has a P/E ratio of 16.1, below the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Friday.

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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1. As of noon trading, Michael Kors Holdings ( KORS) is down $0.79 (-1.5%) to $52.29 on light volume Thus far, 1.7 million shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 5.8 million shares. The stock has ranged in price between $51.71-$53.12 after having opened the day at $53.05 as compared to the previous trading day's close of $53.08.

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 $10.7 billion and is part of the retail industry. The company has a P/E ratio of 33.3, above the S&P 500 P/E ratio of 17.7. Shares are up 4.0% year to date as of the close of trading on Friday.

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.

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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