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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 87 points (-0.6%) at 14,874 as of Thursday, June 6, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,317 issues advancing vs. 1,603 declining with 125 unchanged.

The Services sector currently sits down 0.10 versus the S&P 500, which is down 0.38. On the negative front, top decliners within the sector include Ascena Retail Group ( ASNA), down 10.42, US Airways Group ( LCC), down 4.60, United Continental Holdings ( UAL), down 4.11, Netflix ( NFLX), down 3.51 and Southwest Airlines ( LUV), down 2.71. Top gainers within the sector include Liberty Media Corporation ( LMCA), up 11.0%, Home Depot ( HD), up 1.6%, AutoZone ( AZO), up 1.1%, Canadian Pacific Railway ( CP), up 0.9% and Sirius XM Radio ( SIRI), up 1.1%.

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

5. Discovery Communications ( DISCA) is one of the companies pushing the Services sector lower today. As of noon trading, Discovery Communications is down $1.44 (-1.9%) to $74.44 on average volume Thus far, 879,840 shares of Discovery Communications exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $74.18-$75.88 after having opened the day at $75.67 as compared to the previous trading day's close of $75.88.

Discovery Communications, Inc. operates as a non fiction media company worldwide. It operates through three segments: U.S. Networks, International Networks, and Education. The company provides original and purchased content across various distribution platforms. Discovery Communications has a market cap of $11.5 billion and is part of the media industry. The company has a P/E ratio of 30.6, above the S&P 500 P/E ratio of 17.7. Shares are up 24.0% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Discovery Communications 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, solid stock price performance, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Discovery Communications 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, Charter Communications ( CHTR) is down $2.13 (-1.9%) to $111.79 on light volume Thus far, 175,964 shares of Charter Communications exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $111.65-$114.47 after having opened the day at $113.92 as compared to the previous trading day's close of $113.92.

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. Charter Communications has a market cap of $11.6 billion and is part of the media industry. Shares are up 50.8% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Charter Communications a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Charter Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. 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 Charter Communications 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, Ross Stores ( ROST) is down $1.17 (-1.8%) to $62.78 on light volume Thus far, 588,655 shares of Ross Stores exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $62.77-$64.16 after having opened the day at $64.10 as compared to the previous trading day's close of $63.95.

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. It primarily offers apparel, accessories, footwear, and home fashions for the entire family. Ross Stores has a market cap of $14.2 billion and is part of the retail industry. The company has a P/E ratio of 17.6, equal to the S&P 500 P/E ratio of 17.7. Shares are up 19.5% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Ross Stores a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Ross Stores 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, notable return on equity, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Ross 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, L Brands ( LTD) is down $1.55 (-3.0%) to $50.11 on heavy volume Thus far, 2.3 million shares of L Brands exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $49.85-$51.48 after having opened the day at $51.48 as compared to the previous trading day's close of $51.66.

L Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. L Brands has a market cap of $15.0 billion and is part of the retail industry. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 9.8% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate L Brands a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates L Brands as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Get the full L 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, Amazon.com ( AMZN) is down $1.35 (-0.5%) to $265.82 on average volume Thus far, 1.4 million shares of Amazon.com exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $264.63-$270.50 after having opened the day at $267.75 as compared to the previous trading day's close of $267.17.

Amazon.com, Inc. operates as an online retailer in North America and internationally. The company operates in two segments, North America and International. Amazon.com has a market cap of $121.0 billion and is part of the retail industry. Shares are up 5.9% year to date as of the close of trading on Wednesday. Currently there are 22 analysts that rate Amazon.com a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Amazon.com as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Amazon.com 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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