5 Stocks Pushing 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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 68 points (0.4%) at 15,371 as of Thursday, May 30, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,814 issues advancing vs. 1,135 declining with 104 unchanged.

The Services sector currently sits up 0.4% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the sector include Big Lots ( BIG), down 8.71, AutoNation ( AN), down 2.51, Cencosud ( CNCO), down 1.76 and McDonald's Corporation ( MCD), down 0.75. Top gainers within the sector include Liberty Media Corporation ( LMCA), up 14.2%, Express ( EXPR), up 10.6%, Magna International ( MGA), up 2.9%, Michael Kors Holdings ( KORS), up 2.8% and Royal Caribbean Cruises ( RCL), up 2.4%.

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

5. Thomson Reuters Corporation ( TRI) is one of the companies pushing the Services sector lower today. As of noon trading, Thomson Reuters Corporation is down $0.43 (-1.2%) to $34.25 on average volume Thus far, 813,132 shares of Thomson Reuters Corporation exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $34.23-$34.69 after having opened the day at $34.69 as compared to the previous trading day's close of $34.68.

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. It sells electronic content and services to professionals, primarily on a subscription basis. Thomson Reuters Corporation has a market cap of $29.1 billion and is part of the media industry. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 19.3% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Thomson Reuters Corporation a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Thomson Reuters Corporation as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins. Get the full Thomson Reuters 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.

4. As of noon trading, Alliance Data Systems Corporation ( ADS) is down $2.94 (-1.6%) to $178.19 on heavy volume Thus far, 583,343 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 461,700 shares. The stock has ranged in price between $177.93-$181.40 after having opened the day at $181.12 as compared to the previous trading day's close of $181.13.

Alliance Data Systems Corporation provides marketing and loyalty solutions primarily in North America. The company operates in three segments: LoyaltyOne, Epsilon, and Private Label Services and Credit. Alliance Data Systems Corporation has a market cap of $9.0 billion and is part of the diversified services industry. The company has a P/E ratio of 27.6, above the S&P 500 P/E ratio of 17.7. Shares are up 26.4% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Alliance Data Systems Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Alliance Data Systems Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and expanding profit margins. 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 Alliance Data Systems 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.

3. As of noon trading, Dollar Tree Stores ( DLTR) is down $0.57 (-1.1%) to $49.20 on average volume Thus far, 787,825 shares of Dollar Tree Stores exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $49.15-$49.99 after having opened the day at $49.70 as compared to the previous trading day's close of $49.77.

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise at the fixed price of $1.00. Dollar Tree Stores has a market cap of $11.3 billion and is part of the retail 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 24.7% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Dollar Tree Stores a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Dollar Tree Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Dollar Tree 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.

2. As of noon trading, Yum Brands ( YUM) is down $0.62 (-0.9%) to $68.92 on light volume Thus far, 922,356 shares of Yum Brands exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $68.92-$69.52 after having opened the day at $69.50 as compared to the previous trading day's close of $69.54.

YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants in the United States and internationally. It operates in six segments: YUM Restaurants China, YUM Restaurants International, Taco Bell U.S., KFC U.S., Pizza Hut U.S., and YUM Restaurants India. Yum Brands has a market cap of $31.5 billion and is part of the leisure industry. The company has a P/E ratio of 22.3, above the S&P 500 P/E ratio of 17.7. Shares are up 4.7% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Yum Brands a buy, 1 analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Yum Brands as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Yum Brands 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, Lowe's Companies ( LOW) is down $0.33 (-0.8%) to $42.76 on light volume Thus far, 2.8 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 8.0 million shares. The stock has ranged in price between $42.75-$43.49 after having opened the day at $43.24 as compared to the previous trading day's close of $43.09.

Lowe's Companies, Inc. operates as a home improvement retailer. It offers products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $46.7 billion and is part of the retail industry. The company has a P/E ratio of 24.5, above the S&P 500 P/E ratio of 17.7. Shares are up 20.7% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Lowe's Companies a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, solid stock price performance, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Lowe's Companies 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 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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