5 Services Stocks Dragging The Sector Down

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 8 points (0.1%) at 15,256 as of Monday, June 10, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,353 issues advancing vs. 1,578 declining with 107 unchanged.

The Services sector currently sits up 0.4% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the sector include Cencosud ( CNCO), down 3.65, Liberty Global ( LBTYA), down 2.28, Discovery Communications ( DISCA), down 1.68, W.W. Grainger ( GWW), down 1.42 and Canadian Pacific Railway ( CP), down 1.40. Top gainers within the sector include Liberty Media Corporation ( LMCA), up 15.5%, MGM Resorts International ( MGM), up 2.6%, Hertz Global Holdings ( HTZ), up 1.8%, Wynn Resorts ( WYNN), up 1.8% and Las Vegas Sands ( LVS), up 1.7%.

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

5. Gap ( GPS) is one of the companies pushing the Services sector lower today. As of noon trading, Gap is down $0.50 (-1.2%) to $41.60 on light volume Thus far, 1.3 million shares of Gap exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $41.52-$42.40 after having opened the day at $42.25 as compared to the previous trading day's close of $42.09.

The Gap, Inc. operates as an apparel retail company. It offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands. The company operates through two segments, Stores and Direct. Gap has a market cap of $19.1 billion and is part of the retail industry. The company has a P/E ratio of 15.9, below the S&P 500 P/E ratio of 17.7. Shares are up 35.6% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Gap a buy, 2 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Gap 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, revenue growth 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 Gap 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, Lowe's Companies ( LOW) is down $0.25 (-0.6%) to $41.35 on average volume Thus far, 4.2 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 8.1 million shares. The stock has ranged in price between $41.28-$41.77 after having opened the day at $41.58 as compared to the previous trading day's close of $41.60.

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 $43.6 billion and is part of the retail industry. The company has a P/E ratio of 23.3, above the S&P 500 P/E ratio of 17.7. Shares are up 17.1% year to date as of the close of trading on Friday. 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.

3. As of noon trading, Time Warner ( TWX) is down $0.78 (-1.3%) to $57.99 on average volume Thus far, 2.3 million shares of Time Warner exchanged hands as compared to its average daily volume of 6.2 million shares. The stock has ranged in price between $57.79-$58.78 after having opened the day at $58.77 as compared to the previous trading day's close of $58.77.

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 $53.6 billion and is part of the media industry. The company has a P/E ratio of 17.7, below the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Friday. 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.

2. As of noon trading, Comcast ( CMCSA) is down $0.32 (-0.8%) to $40.86 on average volume Thus far, 4.7 million shares of Comcast exchanged hands as compared to its average daily volume of 12.0 million shares. The stock has ranged in price between $40.50-$41.21 after having opened the day at $41.18 as compared to the previous trading day's close of $41.18.

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 $85.7 billion and is part of the media industry. The company has a P/E ratio of 17.0, below the S&P 500 P/E ratio of 17.7. Shares are up 7.7% year to date as of the close of trading on Friday. 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, Walt Disney ( DIS) is down $0.91 (-1.4%) to $63.94 on average volume Thus far, 3.2 million shares of Walt Disney exchanged hands as compared to its average daily volume of 8.3 million shares. The stock has ranged in price between $63.88-$64.97 after having opened the day at $64.91 as compared to the previous trading day's close of $64.85.

The Walt Disney Company operates as an entertainment company worldwide. Its Media Networks segment engages in broadcast television network, television production and distribution, television stations, broadcast radio networks and stations, and publishing and digital operations. Walt Disney has a market cap of $113.7 billion and is part of the media industry. The company has a P/E ratio of 21.0, above the S&P 500 P/E ratio of 17.7. Shares are up 30.2% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Walt Disney a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Walt Disney 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 good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Walt Disney 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.

null

More from Markets

Global Stocks Edge Higher, But Bond Yields, Oil Prices May Test Market Strength

Global Stocks Edge Higher, But Bond Yields, Oil Prices May Test Market Strength

SAP Shares Leap After Cloud Business Prompts Full-Year Guidance Upgrade

SAP Shares Leap After Cloud Business Prompts Full-Year Guidance Upgrade

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Video: Stop Using Student Loan Money to Buy Bitcoin

Video: Stop Using Student Loan Money to Buy Bitcoin