5 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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 41 points (-0.3%) at 14,800 as of Friday, Aug. 30, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 850 issues advancing vs. 2,040 declining with 117 unchanged.

The Services sector currently sits down 1.0% versus the S&P 500, which is down 0.3%. On the negative front, top decliners within the sector include Krispy Kreme Doughnuts ( KKD), down 14.0%, Avnet ( AVT), down 2.6%, Delhaize Group ( DEG), down 2.5%, Luxottica Group ( LUX), down 2.0% and Hertz Global Holdings ( HTZ), down 1.7%. Top gainers within the sector include LATAM Airlines Group S.A ( LFL), up 2.0%, Delta Air Lines ( DAL), up 1.7%, Michael Kors Holdings ( KORS), up 1.0%, United Continental Holdings ( UAL), up 1.2% and Time Warner Cable ( TWC), up 0.7%.

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

5. Time Warner ( TWX) is one of the companies pushing the Services sector lower today. As of noon trading, Time Warner is down $0.44 (-0.7%) to $60.56 on light volume. Thus far, 1.0 million shares of Time Warner exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $60.48-$61.12 after having opened the day at $61.10 as compared to the previous trading day's close of $61.00.

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. The company operates in three segments: Networks, Film and TV Entertainment, and Publishing. The Networks segment consists of Turner Broadcasting System, Inc. and Home Box Office, Inc. Time Warner has a market cap of $56.1 billion and is part of the media industry. Shares are up 27.5% year to date as of the close of trading on Thursday. Currently there are 17 analysts that rate Time Warner a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Time Warner 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Time Warner 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, Lowe's Companies ( LOW) is down $0.45 (-1.0%) to $45.97 on light volume. Thus far, 2.3 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 7.7 million shares. The stock has ranged in price between $45.74-$46.62 after having opened the day at $46.50 as compared to the previous trading day's close of $46.42.

Lowe's Companies, Inc. operates as a home improvement retailer. It offers products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $49.7 billion and is part of the retail industry. Shares are up 30.7% year to date as of the close of trading on Thursday. Currently there are 9 analysts that rate Lowe's Companies a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Lowe's Companies 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, 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 Lowe's Companies 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, MasterCard Incorporated ( MA) is down $4.94 (-0.8%) to $607.63 on light volume. Thus far, 197,887 shares of MasterCard Incorporated exchanged hands as compared to its average daily volume of 690,300 shares. The stock has ranged in price between $607.15-$614.98 after having opened the day at $613.95 as compared to the previous trading day's close of $612.57.

MasterCard Incorporated, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. MasterCard Incorporated has a market cap of $70.8 billion and is part of the financial services industry. Shares are up 24.7% year to date as of the close of trading on Thursday. Currently there are 18 analysts that rate MasterCard Incorporated a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates MasterCard Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. 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 MasterCard Incorporated 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, Visa ( V) is down $1.39 (-0.8%) to $173.98 on light volume. Thus far, 864,030 shares of Visa exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $173.95-$175.50 after having opened the day at $175.41 as compared to the previous trading day's close of $175.37.

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $90.2 billion and is part of the financial services industry. Shares are up 15.7% year to date as of the close of trading on Thursday. Currently there are 21 analysts that rate Visa a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Visa 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, expanding profit margins, good cash flow from operations and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Visa 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, Netflix ( NFLX) is down $3.01 (-1.1%) to $284.84 on average volume. Thus far, 1.3 million shares of Netflix exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $283.88-$288.83 after having opened the day at $288.25 as compared to the previous trading day's close of $287.85.

Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. Netflix has a market cap of $16.7 billion and is part of the specialty retail industry. Shares are up 206.0% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Netflix a buy, 5 analysts rate it a sell, and 18 rate it a hold.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk. Get the full Netflix 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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