TV, RCL, CCL And BBY, Pushing 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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 47 points (0.3%) at 15,382 as of Tuesday, May 21, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,570 issues advancing vs. 1,367 declining with 136 unchanged.

The Services sector currently sits up 0.5% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include Alaska Air Group ( ALK), down 3.72, United Continental Holdings ( UAL), down 2.32, Delta Air Lines ( DAL), down 1.66, Netflix ( NFLX), down 1.59 and Priceline.com ( PCLN), down 0.71. Top gainers within the sector include Liberty Media Corporation ( LMCA), up 13.7%, AutoZone ( AZO), up 6.1%, Shaw Communications ( SJR), up 4.8%, Luxottica Group ( LUX), up 2.6% and CH Robinson Worldwide ( CHRW), up 2.4%.

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

4. Grupo Televisa S.A ( TV) is one of the companies pushing the Services sector lower today. As of noon trading, Grupo Televisa S.A is down $0.71 (-2.6%) to $26.29 on average volume Thus far, 1.1 million shares of Grupo Televisa S.A exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $26.21-$26.96 after having opened the day at $26.92 as compared to the previous trading day's close of $27.00.

Grupo Televisa, S.A.B. operates as a media company. Grupo Televisa S.A has a market cap of $15.3 billion and is part of the media industry. The company has a P/E ratio of 21.2, above the S&P 500 P/E ratio of 17.7. Shares are up 1.6% year to date as of the close of trading on Monday.

TheStreet Ratings rates Grupo Televisa S.A as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Grupo Televisa S.A Ratings Report now.

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3. As of noon trading, Royal Caribbean Cruises ( RCL) is down $0.88 (-2.3%) to $36.93 on heavy volume Thus far, 2.2 million shares of Royal Caribbean Cruises exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $36.62-$37.22 after having opened the day at $37.20 as compared to the previous trading day's close of $37.81.

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. It owns five cruise brands comprising Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisieres de France. Royal Caribbean Cruises has a market cap of $8.2 billion and is part of the leisure industry. The company has a P/E ratio of 170.6, above the S&P 500 P/E ratio of 17.7. Shares are up 11.2% year to date as of the close of trading on Monday.

TheStreet Ratings rates Royal Caribbean Cruises as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and increase in net income. 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 Royal Caribbean Cruises Ratings Report now.

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2. As of noon trading, Carnival Corporation ( CCL) is down $1.40 (-4.0%) to $33.92 on heavy volume Thus far, 15.2 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $32.92-$33.95 after having opened the day at $32.92 as compared to the previous trading day's close of $35.32.

Carnival Corporation operates as a cruise and vacation company worldwide. The company operates in two segments, North America; and Europe, Australia, and Asia. Carnival Corporation has a market cap of $20.7 billion and is part of the leisure industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are down 3.9% year to date as of the close of trading on Monday.

TheStreet Ratings rates Carnival Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins. Get the full Carnival Corporation Ratings Report now.

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1. As of noon trading, Best Buy ( BBY) is down $1.36 (-5.1%) to $25.44 on heavy volume Thus far, 12.3 million shares of Best Buy exchanged hands as compared to its average daily volume of 11.4 million shares. The stock has ranged in price between $25.20-$26.99 after having opened the day at $26.04 as compared to the previous trading day's close of $26.81.

Best Buy Co., Inc. operates as a retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Best Buy has a market cap of $9.1 billion and is part of the retail industry. The company has a P/E ratio of 8.5, below the S&P 500 P/E ratio of 17.7. Shares are up 127.0% year to date as of the close of trading on Monday.

TheStreet Ratings rates Best Buy as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk. Get the full Best Buy 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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