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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 15,368 as of Monday, May 20, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,885 issues advancing vs. 1,048 declining with 118 unchanged.

The Services sector currently sits up 0.6% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the sector include Team ( TISI), down 17.14, Alaska Air Group ( ALK), down 4.57, Safeway ( SWY), down 2.43, Bed Bath & Beyond ( BBBY), down 2.16 and CarMax ( KMX), down 1.89. Top gainers within the sector include Websense ( WBSN), up 28.6%, Liberty Media Corporation ( LMCA), up 14.4%, Rite Aid Corporation ( RAD), up 7.5%, Ctrip.com International ( CTRP), up 5.0% and Ryanair Holdings ( RYAAY), up 4.7%.

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

5. United Continental Holdings ( UAL) is one of the companies pushing the Services sector lower today. As of noon trading, United Continental Holdings is down $0.40 (-1.1%) to $34.35 on light volume Thus far, 1.2 million shares of United Continental Holdings exchanged hands as compared to its average daily volume of 4.5 million shares. The stock has ranged in price between $34.22-$35.27 after having opened the day at $34.87 as compared to the previous trading day's close of $34.75.

United Continental Holdings, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company operates in six continents from its hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark, San Francisco, Tokyo, and Washington, D.C. United Continental Holdings has a market cap of $11.5 billion and is part of the transportation industry. Shares are up 48.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates United Continental Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins. Get the full United Continental Holdings Ratings Report now.

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4. As of noon trading, Time Warner Cable ( TWC) is down $0.63 (-0.6%) to $97.32 on light volume Thus far, 709,464 shares of Time Warner Cable exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $97.10-$98.09 after having opened the day at $97.84 as compared to the previous trading day's close of $97.95.

Time Warner Cable Inc., together with its subsidiaries, offers video, high-speed data, and voice services to residential and business service customers over its broadband cable systems in the United States. Time Warner Cable has a market cap of $28.3 billion and is part of the media industry. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 0.8% year to date as of the close of trading on Friday.

TheStreet Ratings rates Time Warner Cable as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Time Warner Cable Ratings Report now.

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3. As of noon trading, CBS Corporation ( CBS) is down $0.39 (-0.8%) to $51.14 on light volume Thus far, 2.0 million shares of CBS Corporation exchanged hands as compared to its average daily volume of 6.7 million shares. The stock has ranged in price between $51.04-$51.53 after having opened the day at $51.44 as compared to the previous trading day's close of $51.53.

CBS Corporation, together with its subsidiaries, operates as a mass media company in the United States and internationally. CBS Corporation has a market cap of $28.4 billion and is part of the media industry. The company has a P/E ratio of 18.9, above the S&P 500 P/E ratio of 17.7. Shares are up 35.4% year to date as of the close of trading on Friday.

TheStreet Ratings rates CBS Corporation 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, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. 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 CBS Corporation Ratings Report now.

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2. As of noon trading, Directv ( DTV) is down $0.81 (-1.2%) to $64.40 on light volume Thus far, 1.9 million shares of Directv exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $63.94-$65.25 after having opened the day at $65.25 as compared to the previous trading day's close of $65.21.

DIRECTV provides digital television entertainment in the United States and Latin America. The company engages in acquiring, promoting, selling, and distributing digital entertainment programming primarily through satellite to residential and commercial subscribers. Directv has a market cap of $36.1 billion and is part of the media industry. The company has a P/E ratio of 13.7, below the S&P 500 P/E ratio of 17.7. Shares are up 29.0% year to date as of the close of trading on Friday.

TheStreet Ratings rates Directv 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 and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Directv Ratings Report now.

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1. As of noon trading, Time Warner ( TWX) is down $0.43 (-0.7%) to $60.28 on light volume Thus far, 2.1 million shares of Time Warner exchanged hands as compared to its average daily volume of 6.5 million shares. The stock has ranged in price between $60.19-$61.00 after having opened the day at $60.72 as compared to the previous trading day's close of $60.71.

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 $56.6 billion and is part of the media industry. The company has a P/E ratio of 18.7, above the S&P 500 P/E ratio of 17.7. Shares are up 26.9% year to date as of the close of trading on Friday.

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, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. 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 Time Warner 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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