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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