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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 62 points (-0.4%) at 14,778 as of Wednesday, May 1, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 958 issues advancing vs. 1,966 declining with 114 unchanged.

The Services sector currently sits down 1.00 versus the S&P 500, which is down 0.42. On the negative front, top decliners within the sector include WEX ( WEX), down 9.45, WEX ( WXS), down 9.45, Amazon.com ( AMZN), down 2.92, MasterCard Incorporated ( MA), down 2.56 and Fiserv ( FISV), down 2.57. Top gainers within the sector include Liberty Media Corporation ( LMCA), up 7.0%, Western Union Company ( WU), up 5.2%, Tim Hortons ( THI), up 4.0%, Comcast ( CMCSK), up 1.6% and CVS Caremark ( CVS), up 1.2%.

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

5. Delta Air Lines ( DAL) is one of the companies pushing the Services sector lower today. As of noon trading, Delta Air Lines is down $0.27 (-1.6%) to $16.87 on average volume Thus far, 7.1 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 14.0 million shares. The stock has ranged in price between $16.82-$17.55 after having opened the day at $17.26 as compared to the previous trading day's close of $17.14.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. Its route network is centered around a system of hub and international gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $14.5 billion and is part of the transportation industry. The company has a P/E ratio of 16.0, below the S&P 500 P/E ratio of 17.7. Shares are up 44.4% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Delta Air Lines as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full Delta Air Lines Ratings Report now.

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4. As of noon trading, Union Pacific ( UNP) is down $1.00 (-0.7%) to $146.96 on light volume Thus far, 586,870 shares of Union Pacific exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $146.60-$148.60 after having opened the day at $147.67 as compared to the previous trading day's close of $147.96.

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Union Pacific has a market cap of $68.8 billion and is part of the transportation industry. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 17.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Union Pacific as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Union Pacific Ratings Report now.

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3. As of noon trading, Starbucks Corporation ( SBUX) is down $0.63 (-1.0%) to $60.21 on light volume Thus far, 1.7 million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $59.95-$60.68 after having opened the day at $60.55 as compared to the previous trading day's close of $60.84.

Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. As of September 30, 2012, the company operated 9,405 company-operated stores and 8,661 licensed stores. Starbucks Corporation has a market cap of $45.4 billion and is part of the leisure industry. The company has a P/E ratio of 31.7, above the S&P 500 P/E ratio of 17.7. Shares are up 13.4% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Starbucks Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Starbucks Corporation Ratings Report now.

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2. As of noon trading, Time Warner ( TWX) is down $0.38 (-0.6%) to $59.40 on heavy volume Thus far, 8.1 million shares of Time Warner exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $58.23-$59.97 after having opened the day at $59.50 as compared to the previous trading day's close of $59.78.

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. The company operates in three segments: Networks, Film and TV Entertainment, and Publishing. Time Warner has a market cap of $56.2 billion and is part of the media industry. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 25.0% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Time Warner as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Time Warner Ratings Report now.

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1. As of noon trading, Netflix ( NFLX) is down $3.79 (-1.8%) to $212.28 on light volume Thus far, 1.8 million shares of Netflix exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $211.65-$217.39 after having opened the day at $215.92 as compared to the previous trading day's close of $216.07.

Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. Netflix has a market cap of $12.0 billion and is part of the specialty retail industry. The company has a P/E ratio of 511.9, above the S&P 500 P/E ratio of 17.7. Shares are up 132.2% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk. Get the full Netflix 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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