UPS, TWX, MCD, V And WMT, 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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 187 points (-1.2%) at 14,990 as of Wednesday, June 5, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 593 issues advancing vs. 2,381 declining with 93 unchanged.

The Services sector currently sits down 1.14 versus the S&P 500, which is down 1.24. On the negative front, top decliners within the sector include Hertz Global Holdings ( HTZ), down 4.35, MGM Resorts International ( MGM), down 4.20, Grupo Televisa S.A.B ( TV), down 3.91, Canadian Pacific Railway ( CP), down 4.38 and Discovery Communications ( DISCA), down 3.39. A company within the sector that increased today was Walgreen Company ( WAG), up 1.33.

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

5. United Parcel Service Inc (UPS) Class B ( UPS) is one of the companies pushing the Services sector lower today. As of noon trading, United Parcel Service Inc (UPS) Class B is down $0.86 (-1.0%) to $85.10 on average volume Thus far, 1.7 million shares of United Parcel Service Inc (UPS) Class B exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $85.04-$85.91 after having opened the day at $85.77 as compared to the previous trading day's close of $85.96.

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain and Freight. The U.S. United Parcel Service Inc (UPS) Class B has a market cap of $62.5 billion and is part of the transportation industry. The company has a P/E ratio of 94.8, above the S&P 500 P/E ratio of 17.7. Shares are up 16.6% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate United Parcel Service Inc (UPS) Class B a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates United Parcel Service Inc (UPS) Class B as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, growth in earnings per share, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full United Parcel Service Inc (UPS) Class B Ratings Report now.

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