4 Services Stocks Dragging The Sector Down

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 3 points (0.0%) at 15,545 as of Thursday, July 25, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,346 issues advancing vs. 1,602 declining with 83 unchanged.

The Services sector currently sits up 0.6% versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include United Continental Holdings ( UAL), down 4.8%, Lowe's Companies ( LOW), down 1.9%, FedEx Corporation ( FDX), down 1.5%, Ryanair Holdings ( RYAAY), down 1.5% and Las Vegas Sands ( LVS), down 1.2%. Top gainers within the sector include CoStar Group ( CSGP), up 10.8%, Ingram Micro ( IM), up 7.5%, Visa ( V), up 4.5%, Canadian Pacific Railway ( CP), up 2.4% and Netflix ( NFLX), up 2.1%.

TheStreet would like to highlight 4 stocks pushing the sector lower today:

4. Tractor Supply ( TSCO) is one of the companies pushing the Services sector lower today. As of noon trading, Tractor Supply is down $4.76 (-3.9%) to $116.51 on heavy volume. Thus far, 548,753 shares of Tractor Supply exchanged hands as compared to its average daily volume of 466,600 shares. The stock has ranged in price between $116.05-$119.45 after having opened the day at $118.51 as compared to the previous trading day's close of $121.27.

Tractor Supply Company operates retail farm and ranch stores in the United States. Tractor Supply has a market cap of $8.5 billion and is part of the specialty retail industry. Shares are up 38.2% year to date as of the close of trading on Wednesday. Currently there are 17 analysts that rate Tractor Supply a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Tractor Supply as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. 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 Tractor Supply 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, Southwest Airlines ( LUV) is down $0.32 (-2.3%) to $13.44 on heavy volume. Thus far, 6.2 million shares of Southwest Airlines exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $13.24-$13.76 after having opened the day at $13.70 as compared to the previous trading day's close of $13.76.

Southwest Airlines Co. operates passenger airlines that provide scheduled air transportation services in the United States. As of December 31, 2012, the company operated 694 aircraft, including 606 Boeing 737 aircraft and 88 Boeing 717 aircraft. Southwest Airlines has a market cap of $10.0 billion and is part of the transportation industry. Shares are up 35.6% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Southwest Airlines a buy, 2 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Southwest Airlines 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 and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Southwest Airlines 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, Target ( TGT) is down $0.52 (-0.7%) to $72.80 on light volume. Thus far, 1.3 million shares of Target exchanged hands as compared to its average daily volume of 4.3 million shares. The stock has ranged in price between $72.58-$73.16 after having opened the day at $73.07 as compared to the previous trading day's close of $73.32.

Target Corporation operates general merchandise stores in the United States. Target has a market cap of $47.0 billion and is part of the retail industry. Shares are up 23.8% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Target a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Target as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Target 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, Home Depot ( HD) is down $1.91 (-2.4%) to $78.36 on average volume. Thus far, 5.1 million shares of Home Depot exchanged hands as compared to its average daily volume of 7.3 million shares. The stock has ranged in price between $77.89-$80.10 after having opened the day at $80.09 as compared to the previous trading day's close of $80.27.

The Home Depot, Inc. operates as a home improvement retailer. Home Depot has a market cap of $117.1 billion and is part of the retail industry. Shares are up 29.7% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Home Depot a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Home Depot as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, notable return on equity, good cash flow from operations and compelling growth in net income. 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 Home Depot 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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