5 Stocks Dragging The Services Sector Downward

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 66 points (0.4%) at 14,999 as of Wednesday, July 3, 2013, 12:51 PM ET. The NYSE advances/declines ratio sits at 1,256 issues advancing vs. 1,690 declining with 89 unchanged.

The Services sector currently sits up 0.2% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include Robert Half International ( RHI), down 5.0%, Delta Air Lines ( DAL), down 2.2%, Canadian Pacific Railway ( CP), down 1.6%, Tyco International ( TYC), down 0.8% and Grupo Televisa S.A.B ( TV), down 0.9%. Top gainers within the sector include Chipotle Mexican Grill ( CMG), up 3.4%, Computer Sciences Corporation ( CSC), up 2.4%, Discovery Communications ( DISCK), up 2.5%, AutoNation ( AN), up 2.6% and Time Warner Cable ( TWC), up 2.5%.

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

5. Staples ( SPLS) is one of the companies pushing the Services sector lower today. As of noon trading, Staples is down $0.39 (-2.4%) to $15.91 on light volume. Thus far, 2.9 million shares of Staples exchanged hands as compared to its average daily volume of 8.8 million shares. The stock has ranged in price between $15.85-$16.17 after having opened the day at $16.11 as compared to the previous trading day's close of $16.30.

Staples, Inc., together with its subsidiaries, operates as an office products company. It operates in three segments: North American Stores & Online, North American Commercial, and International Operations. Staples has a market cap of $10.6 billion and is part of the specialty retail industry. Shares are up 43.0% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Staples a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Staples as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. 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 Staples Ratings Report now.

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4. As of noon trading, L Brands ( LTD) is down $0.46 (-0.9%) to $49.34 on light volume. Thus far, 864,657 shares of L Brands exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $48.77-$49.50 after having opened the day at $49.50 as compared to the previous trading day's close of $49.79.

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 $14.4 billion and is part of the retail industry. Shares are up 5.8% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate L Brands a buy, 3 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates L Brands as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, increase in net income, good cash flow from operations and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full L Brands Ratings Report now.

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3. As of noon trading, News Corporation ( NWSA) is down $0.12 (-0.8%) to $14.88 on average volume. Thus far, 7.4 million shares of News Corporation exchanged hands as compared to its average daily volume of 15.8 million shares. The stock has ranged in price between $14.73-$15.09 after having opened the day at $14.95 as compared to the previous trading day's close of $15.00.

News Corporation operates as a diversified media company worldwide. News Corporation has a market cap of $49.4 billion and is part of the media industry. The company has a P/E ratio of 12.7, below the S&P 500 P/E ratio of 17.7. Shares are up 27.7% year to date as of the close of trading on Tuesday. Currently there are 19 analysts that rate News Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates News 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, notable return on equity, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full News 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, Walgreen Company ( WAG) is down $0.43 (-1.0%) to $44.03 on average volume. Thus far, 3.6 million shares of Walgreen Company exchanged hands as compared to its average daily volume of 5.9 million shares. The stock has ranged in price between $43.31-$44.04 after having opened the day at $43.86 as compared to the previous trading day's close of $44.46.

Walgreen Co., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. Walgreen Company has a market cap of $41.9 billion and is part of the retail industry. Shares are up 20.1% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Walgreen Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Walgreen Company 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, CVS Caremark ( CVS) is down $0.24 (-0.4%) to $58.26 on average volume. Thus far, 2.4 million shares of CVS Caremark exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $57.46-$58.26 after having opened the day at $58.21 as compared to the previous trading day's close of $58.49.

CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. CVS Caremark has a market cap of $70.5 billion and is part of the retail industry. Shares are up 21.0% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate CVS Caremark a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates CVS Caremark 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, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full CVS Caremark 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).
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