3 Stocks Dragging The Services Sector Downward

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 70 points (0.5%) at 14,846 as of Wednesday, Aug. 28, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,865 issues advancing vs. 1,062 declining with 104 unchanged.

The Services sector currently sits up 0.5% versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the sector include New Oriental Education & Technology Group I ( EDU), down 3.0%, Copa Holdings ( CPA), down 2.6%, Ryanair Holdings ( RYAAY), down 2.5%, Luxottica Group ( LUX), down 1.9% and Royal Philips ( PHG), down 0.9%. Top gainers within the sector include Chico's FAS ( CHS), up 6.4%, Conn's ( CONN), up 6.6%, Signet Jewelers ( SIG), up 2.6%, Netflix ( NFLX), up 2.9% and MGM Resorts International ( MGM), up 2.1%.

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

3. Tiffany ( TIF) is one of the companies pushing the Services sector lower today. As of noon trading, Tiffany is down $2.68 (-3.3%) to $78.14 on heavy volume. Thus far, 1.6 million shares of Tiffany exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $77.66-$79.60 after having opened the day at $79.37 as compared to the previous trading day's close of $80.82.

Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of jewelry worldwide. The company operates through Americas, Asia-Pacific, Japan, Europe, and Other segments. Tiffany has a market cap of $10.4 billion and is part of the specialty retail industry. Shares are up 40.9% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Tiffany a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Tiffany 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, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Tiffany 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, Marriott International ( MAR) is down $0.27 (-0.7%) to $40.15 on average volume. Thus far, 1.4 million shares of Marriott International exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $39.85-$40.37 after having opened the day at $40.32 as compared to the previous trading day's close of $40.42.

Marriott International, Inc. operates, franchises, and licenses hotels and timeshare properties worldwide. Marriott International has a market cap of $12.5 billion and is part of the leisure industry. Shares are up 8.5% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Marriott International a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Marriott International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, impressive record of earnings per share growth, compelling growth in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Marriott International 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, Carnival Corporation ( CCL) is down $0.47 (-1.3%) to $36.10 on average volume. Thus far, 2.3 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $35.97-$36.29 after having opened the day at $36.25 as compared to the previous trading day's close of $36.57.

Carnival Corporation operates as a cruise and vacation company worldwide. The company operates in two segments, North America; and Europe, Australia, and Asia. Carnival Corporation has a market cap of $22.2 billion and is part of the leisure industry. Shares are down 0.5% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Carnival Corporation a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Carnival Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and feeble growth in the company's earnings per share. Get the full Carnival 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.

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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