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.

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 $1.56 (-2.7%) to $56.78 on average volume Thus far, 4.0 million shares of Time Warner exchanged hands as compared to its average daily volume of 6.3 million shares. The stock has ranged in price between $56.61-$58.07 after having opened the day at $58.00 as compared to the previous trading day's close of $58.34.

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 $54.6 billion and is part of the media industry. The company has a P/E ratio of 18.0, above the S&P 500 P/E ratio of 17.7. Shares are up 22.0% 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 $2.04 (-2.1%) to $96.33 on average volume Thus far, 2.4 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $96.26-$98.16 after having opened the day at $98.13 as compared to the previous trading day's close of $98.37.

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 $98.2 billion and is part of the leisure 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 11.5% 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, Visa ( V) is down $2.80 (-1.6%) to $177.40 on average volume Thus far, 1.6 million shares of Visa exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $177.30-$180.19 after having opened the day at $179.87 as compared to the previous trading day's close of $180.20.

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $93.3 billion and is part of the financial services industry. The company has a P/E ratio of 49.8, above the S&P 500 P/E ratio of 17.7. Shares are up 18.9% year to date as of the close of trading on Tuesday. Currently there are 19 analysts that rate Visa a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Visa 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Visa 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 $0.63 (-0.8%) to $75.31 on average volume Thus far, 3.3 million shares of Wal-Mart Stores exchanged hands as compared to its average daily volume of 7.4 million shares. The stock has ranged in price between $75.26-$75.95 after having opened the day at $75.72 as compared to the previous trading day's close of $75.94.

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 $249.0 billion and is part of the retail industry. The company has a P/E ratio of 14.9, below the S&P 500 P/E ratio of 17.7. Shares are up 11.3% 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

If you liked this article you might like

Time to Sell UPS Stock and Buy FedEx Instead?

Time to Sell UPS Stock and Buy FedEx Instead?

Why Activist Investors Won't Target UPS Even After Lackluster Results

Why Activist Investors Won't Target UPS Even After Lackluster Results

UPS's Long-Tenured Board Members Are a Red Flag for Investors

UPS's Long-Tenured Board Members Are a Red Flag for Investors

These Were the 3 Hottest Stories on Wall Street Tuesday

These Were the 3 Hottest Stories on Wall Street Tuesday

These Are the Hottest Stories on Wall Street Tuesday

These Are the Hottest Stories on Wall Street Tuesday