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 155 points (-1.0%) at 15,255 as of Wednesday, May 29, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 466 issues advancing vs. 2,548 declining with 68 unchanged.

The Services sector currently sits down 0.96 versus the S&P 500, which is down 0.89. On the negative front, top decliners within the sector include Companhia Brasileira De Distribuicao ( CBD), down 4.10, Delta Air Lines ( DAL), down 3.69, Luxottica Group ( LUX), down 2.81, McKesson ( MCK), down 2.52 and Genuine Parts Company ( GPC), down 2.61.

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

5. CVS Caremark ( CVS) is one of the companies pushing the Services sector lower today. As of noon trading, CVS Caremark is down $0.93 (-1.5%) to $59.28 on light volume Thus far, 1.9 million shares of CVS Caremark exchanged hands as compared to its average daily volume of 5.7 million shares. The stock has ranged in price between $59.06-$59.88 after having opened the day at $59.83 as compared to the previous trading day's close of $60.21.

CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. CVS Caremark has a market cap of $72.5 billion and is part of the retail industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 24.5% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate CVS Caremark a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates CVS Caremark 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, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full CVS Caremark Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Time Warner ( TWX) is down $0.60 (-1.0%) to $59.40 on light volume Thus far, 1.8 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 $59.27-$59.88 after having opened the day at $59.81 as compared to the previous trading day's close of $60.00.

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 $55.3 billion and is part of the media industry. The company has a P/E ratio of 18.2, above the S&P 500 P/E ratio of 17.7. Shares are up 26.1% year to date as of the close of trading on Tuesday. Currently there are 16 analysts that rate Time Warner a buy, no analysts rate it a sell, and 8 rate it a hold.

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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, McDonald's Corporation ( MCD) is down $2.18 (-2.2%) to $99.06 on heavy volume Thus far, 5.0 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $98.28-$100.64 after having opened the day at $100.64 as compared to the previous trading day's close of $101.24.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's Corporation has a market cap of $100.5 billion and is part of the leisure industry. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 13.7% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates McDonald's 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, growth in earnings per share, increase in net income and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full McDonald's Corporation Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Comcast ( CMCSA) is down $0.92 (-2.2%) to $40.90 on average volume Thus far, 8.0 million shares of Comcast exchanged hands as compared to its average daily volume of 11.9 million shares. The stock has ranged in price between $40.77-$41.79 after having opened the day at $41.76 as compared to the previous trading day's close of $41.82.

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 $89.3 billion and is part of the media industry. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. Shares are up 12.3% year to date as of the close of trading on Tuesday. Currently there are 19 analysts that rate Comcast a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Comcast as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, 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 Comcast Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Wal-Mart Stores ( WMT) is down $1.18 (-1.5%) to $76.14 on light volume Thus far, 2.6 million shares of Wal-Mart Stores exchanged hands as compared to its average daily volume of 7.8 million shares. The stock has ranged in price between $76.06-$77.05 after having opened the day at $76.93 as compared to the previous trading day's close of $77.32.

Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. The company operates in three segments: Walmart U.S., Walmart International, and Sam's Club. Wal-Mart Stores has a market cap of $254.3 billion and is part of the retail industry. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are up 13.3% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Wal-Mart Stores a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Wal-Mart Stores Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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.

null

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%