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 72 points (0.5%) at 14,749 as of Thursday, April 25, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,049 issues advancing vs. 833 declining with 158 unchanged.

The Services sector currently sits up 1.1% versus the S&P 500, which is up 0.7%. On the negative front, top decliners within the sector include Safeway ( SWY), down 17.13, Kroger ( KR), down 2.40, Charter Communications ( CHTR), down 1.70, Whole Foods Market ( WFM), down 1.19 and Yum Brands ( YUM), down 1.21. Top gainers within the sector include Cabela's ( CAB), up 15.3%, R.R. Donnelley & Sons Company ( RRD), up 14.8%, Royal Caribbean Cruises ( RCL), up 7.4%, Service Corporation International ( SCI), up 7.3% and LKQ Corporation ( LKQ), up 6.6%.

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

4. Luxottica Group ( LUX) is one of the companies pushing the Services sector lower today. As of noon trading, Luxottica Group is down $0.45 (-0.8%) to $52.55 on light volume Thus far, 15,057 shares of Luxottica Group exchanged hands as compared to its average daily volume of 128,500 shares. The stock has ranged in price between $52.42-$52.72 after having opened the day at $52.58 as compared to the previous trading day's close of $53.00.

Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, and sports eyewear worldwide. The company operates in two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. Luxottica Group has a market cap of $24.9 billion and is part of the retail industry. The company has a P/E ratio of 54.0, above the S&P 500 P/E ratio of 17.7. Shares are up 28.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Luxottica Group 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, compelling growth in net income, notable return on equity and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Luxottica Group Ratings Report now.

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3. As of noon trading, Tractor Supply ( TSCO) is down $1.87 (-1.7%) to $110.18 on heavy volume Thus far, 1.4 million shares of Tractor Supply exchanged hands as compared to its average daily volume of 700,400 shares. The stock has ranged in price between $107.01-$112.66 after having opened the day at $109.88 as compared to the previous trading day's close of $112.05.

Tractor Supply Company operates retail farm and ranch stores in the United States. Tractor Supply has a market cap of $7.7 billion and is part of the specialty retail industry. The company has a P/E ratio of 29.3, above the S&P 500 P/E ratio of 17.7. Shares are up 25.9% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Tractor Supply as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, 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 is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Tractor Supply Ratings Report now.

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2. As of noon trading, AmerisourceBergen ( ABC) is down $0.80 (-1.4%) to $55.02 on heavy volume Thus far, 2.6 million shares of AmerisourceBergen exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $54.54-$56.00 after having opened the day at $55.82 as compared to the previous trading day's close of $55.82.

AmerisourceBergen Corporation, a pharmaceutical services company, provides drug distribution and related services to healthcare providers and pharmaceutical manufacturers primarily in the United States and Canada. AmerisourceBergen has a market cap of $13.0 billion and is part of the wholesale industry. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 30.4% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates AmerisourceBergen as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity, good cash flow from operations, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full AmerisourceBergen Ratings Report now.

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1. As of noon trading, McKesson ( MCK) is down $0.60 (-0.6%) to $106.41 on average volume Thus far, 670,068 shares of McKesson exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $106.29-$108.16 after having opened the day at $107.04 as compared to the previous trading day's close of $107.01.

McKesson Corporation, together with its subsidiaries, delivers pharmaceuticals, medical supplies, and health care information technologies to the healthcare industry primarily in the United States. It operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. McKesson has a market cap of $24.7 billion and is part of the wholesale industry. The company has a P/E ratio of 16.2, below the S&P 500 P/E ratio of 17.7. Shares are up 10.4% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates McKesson 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, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full McKesson 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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