3 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 127 points (0.8%) at 15,307 as of Tuesday, June 18, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 2,604 issues advancing vs. 474 declining with 57 unchanged.

The Services sector currently sits up 0.7% versus the S&P 500, which is up 0.6%. Top gainers within the sector include United Rentals ( URI), up 5.2%, Tim Hortons ( THI), up 3.6%, Sirius XM Radio ( SIRI), up 2.8%, Liberty Media Corporation ( LMCA), up 2.8% and Directv ( DTV), up 2.4%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. John Wiley & Sons ( JW.A) is one of the companies pushing the Services sector lower today. As of noon trading, John Wiley & Sons is down $2.67 (-6.4%) to $38.78 on heavy volume Thus far, 544,970 shares of John Wiley & Sons exchanged hands as compared to its average daily volume of 238,600 shares. The stock has ranged in price between $37.42-$40.97 after having opened the day at $40.22 as compared to the previous trading day's close of $41.45.

John Wiley & Sons, Inc. provides content and content-enabled digital services to customers worldwide. John Wiley & Sons has a market cap of $2.1 billion and is part of the media industry. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 6.5% year to date as of the close of trading on Monday.

TheStreet Ratings rates John Wiley & Sons as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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 John Wiley & Sons 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, Companhia Brasileira De Distribuicao ( CBD) is down $0.47 (-1.0%) to $45.86 on light volume Thus far, 199,924 shares of Companhia Brasileira De Distribuicao exchanged hands as compared to its average daily volume of 538,700 shares. The stock has ranged in price between $45.41-$46.51 after having opened the day at $46.42 as compared to the previous trading day's close of $46.33.

Companhia Brasileira de Distribuic o engages in the retail of food and non-food products to individual consumers through its chain of hypermarkets, supermarkets, specialized and department stores, and e-commerce. Companhia Brasileira De Distribuicao has a market cap of $12.3 billion and is part of the retail industry. The company has a P/E ratio of 48.5, above the S&P 500 P/E ratio of 17.7. Shares are up 4.4% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Companhia Brasileira De Distribuicao a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Companhia Brasileira De Distribuicao as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations, solid stock price performance and notable return on equity. 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 Companhia Brasileira De Distribuicao 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, Kohl's ( KSS) is down $0.50 (-0.9%) to $52.25 on light volume Thus far, 737,713 shares of Kohl's exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $51.93-$52.79 after having opened the day at $52.79 as compared to the previous trading day's close of $52.75.

Kohl's Corporation operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. Kohl's has a market cap of $11.5 billion and is part of the retail industry. The company has a P/E ratio of 12.4, below the S&P 500 P/E ratio of 17.7. Shares are up 22.7% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Kohl's a buy, 3 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Kohl's as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, attractive valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Kohl's 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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