5 Stocks Pulling 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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 1 points (0.0%) at 15,277 as of Thursday, May 16, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,398 issues advancing vs. 1,509 declining with 138 unchanged.

The Services sector currently sits up 0.2% versus the S&P 500, which is down 0.10. On the negative front, top decliners within the sector include Computer Sciences Corporation ( CSC), down 3.94, Netflix ( NFLX), down 2.91, Wal-Mart Stores ( WMT), down 2.25, CVS Caremark ( CVS), down 1.28 and Walgreen Company ( WAG), down 1.22.

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

5. Starbucks Corporation ( SBUX) is one of the companies pushing the Services sector lower today. As of noon trading, Starbucks Corporation is down $0.34 (-0.5%) to $63.73 on light volume Thus far, 1.6 million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $63.53-$64.06 after having opened the day at $64.00 as compared to the previous trading day's close of $64.07.

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 $47.6 billion and is part of the leisure industry. The company has a P/E ratio of 32.2, above the S&P 500 P/E ratio of 17.7. Shares are up 18.4% year to date as of the close of trading on Wednesday.

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, increase in net income, notable return on equity and good cash flow from operations. 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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4. As of noon trading, Target ( TGT) is down $0.42 (-0.6%) to $69.96 on average volume Thus far, 1.9 million shares of Target exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $69.66-$70.35 after having opened the day at $69.83 as compared to the previous trading day's close of $70.39.

Target Corporation operates general merchandise stores in the United States. Target has a market cap of $44.5 billion and is part of the retail industry. The company has a P/E ratio of 15.4, below the S&P 500 P/E ratio of 17.7. Shares are up 19.0% year to date as of the close of trading on Wednesday.

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

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3. As of noon trading, News Corporation ( NWSA) is down $0.38 (-1.1%) to $33.00 on average volume Thus far, 8.6 million shares of News Corporation exchanged hands as compared to its average daily volume of 14.3 million shares. The stock has ranged in price between $32.99-$33.39 after having opened the day at $33.05 as compared to the previous trading day's close of $33.38.

News Corporation operates as a diversified media company worldwide. News Corporation has a market cap of $50.8 billion and is part of the media industry. The company has a P/E ratio of 13.0, below the S&P 500 P/E ratio of 17.7. Shares are up 31.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates News Corporation 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, solid stock price performance, compelling growth in net income and good cash flow from operations. 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 News Corporation Ratings Report now.

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2. As of noon trading, Comcast ( CMCSA) is down $0.32 (-0.7%) to $43.41 on light volume Thus far, 3.6 million shares of Comcast exchanged hands as compared to its average daily volume of 12.1 million shares. The stock has ranged in price between $43.34-$43.73 after having opened the day at $43.50 as compared to the previous trading day's close of $43.73.

Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. Comcast has a market cap of $92.3 billion and is part of the media industry. The company has a P/E ratio of 18.3, above the S&P 500 P/E ratio of 17.7. Shares are up 16.0% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Comcast as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, 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 shows weak operating cash flow. Get the full Comcast Ratings Report now.

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1. As of noon trading, Walt Disney ( DIS) is down $0.77 (-1.1%) to $66.90 on average volume Thus far, 3.1 million shares of Walt Disney exchanged hands as compared to its average daily volume of 8.0 million shares. The stock has ranged in price between $66.88-$67.89 after having opened the day at $67.62 as compared to the previous trading day's close of $67.67.

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 $121.5 billion and is part of the media industry. The company has a P/E ratio of 22.5, above the S&P 500 P/E ratio of 17.7. Shares are up 35.9% year to date as of the close of trading on Wednesday.

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.

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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