3 Services Stocks Dragging The Sector Down

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 6 points (0.0%) at 14,695 as of Friday, April 26, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 953 issues advancing vs. 1,941 declining with 134 unchanged.

The Services sector currently sits down 0.47 versus the S&P 500, which is down 0.43. On the negative front, top decliners within the sector include Priceline.com ( PCLN), down 2.12, Las Vegas Sands ( LVS), down 1.65, Starbucks Corporation ( SBUX), down 1.35 and Visa ( V), down 0.56. A company within the sector that increased today was Time Warner Cable ( TWC), up 1.14.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Expedia ( EXPE) is one of the companies pushing the Services sector lower today. As of noon trading, Expedia is down $6.38 (-9.8%) to $58.60 on heavy volume Thus far, 5.6 million shares of Expedia exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $58.08-$61.90 after having opened the day at $61.51 as compared to the previous trading day's close of $64.97.

Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. Expedia has a market cap of $7.9 billion and is part of the leisure industry. The company has a P/E ratio of 29.7, above the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Expedia as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Expedia Ratings Report now.

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2. As of noon trading, Walt Disney ( DIS) is down $0.34 (-0.5%) to $61.66 on light volume Thus far, 2.5 million shares of Walt Disney exchanged hands as compared to its average daily volume of 8.3 million shares. The stock has ranged in price between $61.66-$62.28 after having opened the day at $62.10 as compared to the previous trading day's close of $62.00.

The Walt Disney Company operates as an entertainment company worldwide. Its Media Networks segment engages in broadcast television network, television production and distribution, television stations, broadcast radio networks and stations, and publishing and digital operations. Walt Disney has a market cap of $111.8 billion and is part of the media industry. The company has a P/E ratio of 20.0, above the S&P 500 P/E ratio of 17.7. Shares are up 24.5% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Walt Disney as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Walt Disney Ratings Report now.

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1. As of noon trading, Amazon.com ( AMZN) is down $19.96 (-7.3%) to $254.74 on heavy volume Thus far, 8.8 million shares of Amazon.com exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $252.81-$272.02 after having opened the day at $269.97 as compared to the previous trading day's close of $274.70.

Amazon.com, Inc. operates as an online retailer in North America and internationally. The company operates in two segments, North America and International. Amazon.com has a market cap of $122.4 billion and is part of the retail industry. Shares are up 9.5% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Amazon.com as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Amazon.com 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 3 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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