5 Stocks Underperforming Today In The Services Sector

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 79 points (-0.5%) at 15,419 as of Friday, Aug. 9, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,348 issues advancing vs. 1,561 declining with 117 unchanged.

The Services sector currently sits down 0.1% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include Carnival Corporation ( CCL), down 1.7%, Delta Air Lines ( DAL), down 1.5%, Directv ( DTV), down 1.4%, Home Depot ( HD), down 1.3% and Luxottica Group ( LUX), down 1.3%. Top gainers within the sector include Priceline.com ( PCLN), up 5.1%, Amazon.com ( AMZN), up 1.1%, Royal Philips ( PHG), up 0.8% and CVS Caremark ( CVS), up 0.6%.

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

5. Canadian National Railway ( CNI) is one of the companies pushing the Services sector lower today. As of noon trading, Canadian National Railway is down $1.09 (-1.1%) to $98.36 on average volume. Thus far, 225,706 shares of Canadian National Railway exchanged hands as compared to its average daily volume of 571,200 shares. The stock has ranged in price between $97.94-$99.20 after having opened the day at $99.10 as compared to the previous trading day's close of $99.45.

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. Canadian National Railway has a market cap of $41.5 billion and is part of the transportation industry. Shares are up 9.3% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Canadian National Railway a buy, 1 analyst rates it a sell, and 15 rate it a hold.

TheStreet Ratings rates Canadian National Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Canadian National Railway 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, United Continental Holdings ( UAL) is down $0.83 (-2.4%) to $33.98 on average volume. Thus far, 1.5 million shares of United Continental Holdings exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $33.70-$34.80 after having opened the day at $34.78 as compared to the previous trading day's close of $34.81.

United Continental Holdings, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company operates in six continents from its hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark, San Francisco, Tokyo, and Washington, D.C. United Continental Holdings has a market cap of $12.1 billion and is part of the transportation industry. Shares are up 48.9% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate United Continental Holdings a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates United Continental Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. 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 United Continental Holdings 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, J.C. Penney ( JCP) is down $1.24 (-9.1%) to $12.42 on heavy volume. Thus far, 23.5 million shares of J.C. Penney exchanged hands as compared to its average daily volume of 9.6 million shares. The stock has ranged in price between $12.40-$13.33 after having opened the day at $13.24 as compared to the previous trading day's close of $13.66.

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. J.C. Penney has a market cap of $2.8 billion and is part of the retail industry. Shares are down 35.1% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate J.C. Penney a buy, 5 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates J.C. Penney as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow. Get the full J.C. Penney 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, Kroger ( KR) is down $0.62 (-1.6%) to $38.98 on average volume. Thus far, 1.9 million shares of Kroger exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $38.66-$39.47 after having opened the day at $39.47 as compared to the previous trading day's close of $39.60.

The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. The company also manufactures and processes food for sale in its supermarkets. It operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores. Kroger has a market cap of $20.2 billion and is part of the retail industry. Shares are up 52.2% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate Kroger a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Kroger 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, increase in net income, revenue growth 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 Kroger 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, Target ( TGT) is down $0.46 (-0.7%) to $70.76 on light volume. Thus far, 1.1 million shares of Target exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $70.41-$71.23 after having opened the day at $71.21 as compared to the previous trading day's close of $71.22.

Target Corporation operates general merchandise stores in the United States. Target has a market cap of $46.0 billion and is part of the retail industry. Shares are up 20.4% year to date as of the close of trading on Thursday. 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.

If you are interested in one of these 4 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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