4 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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 60 points (0.4%) at 15,029 as of Tuesday, May 7, 2013, 12:54 PM ET. The NYSE advances/declines ratio sits at 1,907 issues advancing vs. 994 declining with 159 unchanged.

The Services sector currently sits up 0.3% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the sector include Chipotle Mexican Grill ( CMG), down 2.96, Netflix ( NFLX), down 1.32, Melco Crown Entertainment ( MPEL), down 1.41, Lowe's Companies ( LOW), down 0.96 and Starbucks Corporation ( SBUX), down 0.63. Top gainers within the sector include Mercadolibre ( MELI), up 17.6%, Liberty Media Corporation ( LMCA), up 8.9%, Abercrombie & Fitch Company ( ANF), up 5.3%, Vantiv ( VNTV), up 5.1% and Charter Communications ( CHTR), up 3.6%.

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

4. Ryanair Holdings ( RYAAY) is one of the companies pushing the Services sector lower today. As of noon trading, Ryanair Holdings is down $0.42 (-0.9%) to $44.50 on light volume Thus far, 88,357 shares of Ryanair Holdings exchanged hands as compared to its average daily volume of 314,800 shares. The stock has ranged in price between $44.33-$45.18 after having opened the day at $44.93 as compared to the previous trading day's close of $44.92.

Ryanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, continental Europe, and Morocco. Ryanair Holdings has a market cap of $13.0 billion and is part of the transportation industry. The company has a P/E ratio of 17.8, equal to the S&P 500 P/E ratio of 17.7. Shares are up 31.0% year to date as of the close of trading on Monday.

TheStreet Ratings rates Ryanair Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, notable return on equity 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 Ryanair Holdings Ratings Report now.

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3. As of noon trading, Vitamin Shoppe ( VSI) is down $3.88 (-7.9%) to $45.43 on heavy volume Thus far, 1.1 million shares of Vitamin Shoppe exchanged hands as compared to its average daily volume of 526,300 shares. The stock has ranged in price between $44.36-$47.50 after having opened the day at $47.50 as compared to the previous trading day's close of $49.31.

Vitamin Shoppe, Inc., through its subsidiaries, operates as a specialty retailer and direct marketer of nutritional products in the United States. The company operates in two segments, Retail and Direct. Vitamin Shoppe has a market cap of $1.5 billion and is part of the specialty retail industry. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are down 14.0% year to date as of the close of trading on Monday.

TheStreet Ratings rates Vitamin Shoppe 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, notable return on equity, good cash flow from operations 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 Vitamin Shoppe Ratings Report now.

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2. As of noon trading, Discovery Communications ( DISCK) is down $1.25 (-1.8%) to $70.00 on average volume Thus far, 422,580 shares of Discovery Communications exchanged hands as compared to its average daily volume of 587,000 shares. The stock has ranged in price between $68.51-$70.35 after having opened the day at $68.51 as compared to the previous trading day's close of $71.25.

Discovery Communications, Inc. operates as a non fiction media company worldwide. It operates through three segments: U.S. Networks, International Networks, and Education. The company provides original and purchased content across various distribution platforms. Discovery Communications has a market cap of $6.7 billion and is part of the media industry. The company has a P/E ratio of 28.5, above the S&P 500 P/E ratio of 17.7. Shares are up 22.4% year to date as of the close of trading on Monday.

TheStreet Ratings rates Discovery Communications 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Discovery Communications 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.

1. As of noon trading, Kohl's ( KSS) is down $0.80 (-1.7%) to $47.44 on average volume Thus far, 1.6 million shares of Kohl's exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $46.97-$47.62 after having opened the day at $47.58 as compared to the previous trading day's close of $48.24.

Kohl's Corporation operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. Kohl's has a market cap of $10.7 billion and is part of the retail industry. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Monday.

TheStreet Ratings rates Kohl's as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Kohl's 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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